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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Key Level into Close is 6974.50

By:
James Hyerczyk
Published: Nov 12, 2018, 19:38 UTC

Based on the earlier price action and the current price at 6879.50, the direction of the December E-mini NASDAQ-100 Index futures contract into the close is likely to be determined by trader reaction to the short-term 50% level at 6874.50.

E-mini NASDAQ-100 Index

A sell-off in the technology sector led by a steep drop in shares of Apple is driving December E-mini NASDAQ-100 Index futures sharply lower on Monday. The weakness in Apple has been a drag on other so-called FANG stocks with shares of Alphabet dropping 2.4 percent and Amazon falling 4.4 percent. Amazon is now down about 20 percent from its 52-week high, putting the stock in bear market territory.

At 1909 GMT, December E-mini NASDAQ-100 Index futures are trading 6879.50, down 151.75 or -2.16%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend changed to down on the trade through 6865.00 just three days after turning the trend to up. This gives you an idea of the volatility in the marketplace. If the downside pressure continues then the next target is the main bottom at 6580.50. The new main top is 7231.00.

The main range is 7728.75 to 6580.50. Its retracement zone at 7154.75 to 7290.25 is resistance. This zone stopped the buying last week at 7231.00.

The short-term range is 7368.50 to 6580.50. Its retracement zone is 6974.50 to 7067.50. After straddling this zone earlier in the session, sellers took control, turning this area into new resistance.

The major retracement zone is 6822.75 to 6609.00. This zone is controlling the longer-term direction of the index. It provided support on October 29 when buyers came in at 6580.50.

Daily Swing Chart Technical Forecast

Based on the earlier price action and the current price at 6879.50, the direction of the December E-mini NASDAQ-100 Index futures contract into the close is likely to be determined by trader reaction to the short-term 50% level at 6974.50.

A sustained move over 6974.50 will indicate the presence of buyers. If this move can create enough upside momentum then look for a move into 7067.50. This is followed by the short-term Fibonacci level at 7154.75. This is the last potential resistance level before the 7231.00 main top.

A sustained move under 6974.50 will signal the return of sellers. If this move generates enough downside momentum then look for a possible retest of the major 50% level at 6822.75. This is the last support before 6609.00 and 6580.50.

Look for a labored rally over 6974.50. The way of least resistance is down since the support levels are spread apart.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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