E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – COVID-19 Scare Sends Investors into Tech Stocks
December E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market close on Friday after hitting a record intraday higher earlier in the session.
Fear of a resurgence in COVID-19 infections in Europe as well as new lockdown measures in the region encouraged investors to buy technology shares or stocks in companies that will benefit from widespread lockdowns.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 16628.50 will signal a resumption of the uptrend. A move through 15896.50 will change the main trend to down.
The minor range is 15896.50 to 16628.50. Its 50% level or pivot at 16262.50 is the first potential downside target.
The 50% support level at 15951.00 is the last potential support before the 15896.50 main bottom.
Daily Swing Chart Technical Forecast
The direction of the December E-mini NASDAQ-100 Index into the close on Friday is likely to be determined by trader reaction to 16481.25.
A sustained move over 16481.25 will indicate the presence of buyers. This could trigger a retest of 16628.50. This is also the trigger point for an acceleration to the upside.
A sustained move under 16481.25 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the pivot at 16262.50.
A close under 16481.25 will form a daily closing price reversal top. If confirmed, this could trigger the start of a minimum 2 to 3 day correction.