E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Approaching Short-Term Retracement Zone at 7807.50 to 7846.75

December E-mini NASDAQ-100 Index futures are in a positon to close sharply higher on Monday with optimism over U.S.-China trade relations underpinning prices and bullish comments from an analyst driving shares of Apple higher. Investors also liked the unexpected increase in factory activity for China’s key manufacturing sector. The U.S. Treasury Department also said that the “administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time.” This news was partially responsible for Friday’s stock market plunge.

At 20:36 GMT, December E-mini NASDAQ-100 Index futures are trading 7784.25, up 82.75 or +1.07%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7641.00 will signal a resumption of the downtrend. The market is in no position to change the main trend to up, but there is room for a normal 50% to 61.8% retracement of its recent range.

The minor trend is also down. A trade through 7904.75 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 7390.00 to 8002.50. Its retracement zone at 7696.25 to 7624.00 is support. This zone stopped the selling last week when buyers came in at 7641.00.

The short-term range is 7973.75 to 7641.00. Its retracement zone at 7807.50 to 7846.75 is the next upside target. Trader reaction to this zone will determine whether buyers continue to drive the market into its recent highs, or sellers take control by forming a secondary lower top.

Daily Technical Forecast

Based on the earlier price action and the current price at 7784.75, the direction of the index into the close is likely to be determined by trader reaction to an uptrending Gann angle at 7774.00.

Bullish Scenario

A sustained move over 7774.00 will indicate the presence of buyers. This could create the upside momentum needed to challenge the short-term 50% level at 7807.50, followed by the short-term 61.8% level at 7846.75 and the downtrending Gann angle at 7861.75.

Bearish Scenario

A failure to hold 7774.00 will signal the presence of sellers. The next target is a downtrending Gann angle at 7749.75. Crossing to the weak side of this angle will put the index in a bearish position with the next target the main 50% level at 7696.25.