E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Holding 7902.50 Will Generate Upside Momentum

December E-mini NASDAQ-100 Index futures are trading higher early Thursday after posting a minor closing price reversal bottom during yesterday’s trading session. On Wednesday, the index was under pressure early in the session in reaction to the Brexit stalemate, the lack of fresh news over U.S.-China trade relations, and weakness in the benchmark S&P 500 Index and blue chip Dow Jones Industrial Average.

At 06:56 GMT, December E-mini NASDAQ-100 Index futures are at 7929.75, up 28.25 or +0.36%.

The inability to follow-through to the downside during yesterday’s session may have caught investors by surprise, triggering the intraday reversal to the upside.

Some investors said that weak results from Texas Instruments may have kept stocks in check. Texas Instruments, which is often seen as a proxy for the microchip industry, plunged 7.5% after posting fourth-quarter guidance well below market estimates.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 7994.75 will signal a resumption of the uptrend. The main trend will change to down if 7583.25 fails as support.

The minor trend is down. This is controlling the momentum. A trade through 7988.75 will change the minor trend to up and shift momentum to the upside. A trade through the minor bottom at 7810.25 will indicate the selling pressure is getting stronger.

The minor range is 7994.75 to 7810.25. Its 50% level or pivot at 7902.50 is controlling the near-term direction of the index.

The short-term range is 7583.25 to 7994.75. Its retracement zone at 7789.00 to 7740.50 is support.

The intermediate range is 7474.25 to 7994.75. Its 50% level at 7696.25 is another support level.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 7929.75, the direction of the December E-mini NASDAQ-100 Index futures contract the rest of the session on Thursday, is likely to be determined by trader reaction to the pivot at 7902.50.

Bullish Scenario

A sustained move over 7902.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the minor top at 7988.75, followed closely by the main top at 7994.75.

Bearish Scenario

A sustained move under 7902.50 will signal the presence of sellers. If this move generates enough downside momentum then look for a potential retest of the minor bottom at 7810.25, followed by the short-term retracement zone at 7789.00 to 7740.50.