The direction of the June E-mini NASDAQ-100 Index on Friday is likely to be determined by trader reaction to 13747.75.
June E-mini NASDAQ-100 Index futures are trading slightly lower during the pre-market session after striking a fresh record high earlier. The technology weighted index is outperforming the Dow and the S&P 500 Index this week, gaining more than 2.5% on the back of strong performances in Amazon, Netflix, Microsoft and Google-parent Alphabet.
At 07:27 GMT, June E-mini NASDAQ-100 Index futures are trading 13728.00, down 19.75 or -0.14%. This is down from a high of 13841.75.
The main trend is up according to the daily swing chart. The uptrend was reaffirmed early in the session when buyers took out the previous session’s high. A trade through the intraday high at 13841.75 will signal a resumption of the uptrend.
The main trend will change to down on a move through 12609.75. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is ripe for a potentially bearish closing price reversal top. If confirmed, this won’t change the trend, but it will shift momentum to the downside.
The minor trend is also up. A trade through 13512.50 will change the minor trend to down. This will also shift momentum to the downside.
The minor range is 13512.50 to 13841.75. Its 50% level at 13677.00 is the nearest support.
The main range is 13888.00 to 12200.00. If momentum shifts to the downside then its 50% to 61.8% retracement zone at 13243.00 to 13044.00 will become the primary target area.
The direction of the June E-mini NASDAQ-100 Index on Friday is likely to be determined by trader reaction to 13747.75.
A sustained move over 13757.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 13841.75, followed by the all-time high at 13888.00. This is a potential trigger point for an acceleration to the upside.
A sustained move under 13757.75 will signal the presence of sellers. The first downside target is the minor pivot at 13677.00. Taking out this level could trigger a further break into the minor bottom at 13512.50. The minor trend will change to down on a trade through this level.
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.