E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 12984.50 – 13044.00 Next Upside Target Area

June E-mini NASDAQ-100 Index futures are trading higher early Monday as investors shrug off an early session setback. Tech and growth stocks continue to recover from a recent sell-off. Today’s early support is being fueled by lower Treasury yields.

Despite the early strength, the NASDAQ Composite is still about 6% below its February 12 all-time closing high as technology and high-growth stocks have lost favor in recent months, with their valuations looking less attractive as Treasury yields rise.

At 07:47 GMT, June E-mini NASDAQ-100 Index futures are trading 12891.50, up 47.00 or +0.37%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal bottom on March 5. On Friday, the index formed another potentially bullish closing price reversal bottom. This was confirmed earlier in the session.

The main trend will change to up on a trade through 13287.25. A trade through 12681.75 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The formation of a secondary higher bottom at 12681.75 will set up the market for a change in trend to up over the short-run.

The short-term range is 12200 to 13287.25. Its retracement zone at 12743.50 to 12615.25 is support. This zone stopped by selling on Friday at 12681.75.

The minor range is 13287.25 to 12681.75. Its 50% level at 12984.50 is the first upside target.

The main range is 13888.00 to 12200.00. Its retracement zone at 13044.00 to 13243.25 is the major resistance area. This zone is controlling the near-term direction of the index.

Daily Swing Chart Technical Forecast

The trade through 12898.25 earlier in the session confirmed Friday’s closing price reversal bottom. Trader reaction to this level should set the tone on Monday.

Bullish Scenario

A sustained move over 12898.25 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into 12984.50 and 13044.00. Sellers could come in on the first tests of these levels, however, overtaking 13044.00 could trigger an acceleration to the upside with potential targets coming in at 13243.25, 13287.25 and 13316.75.

Bearish Scenario

A sustained move under 12898.25 will signal the presence of sellers. This could trigger a break into 12743.50, 12681.75 and 12615.25. Aggressive counter-trend buyers could come in on a test of this area. However, if 12615.25 fails then look for a possible acceleration to the downside with 12200.00 the next major target.

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