E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Momentum Shifts Lower on Trade Through 15301.00

December E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market close on Thursday after recovering from early session weakness. The rally was primarily driven by a sharp rise in Tesla Inc.

At 20:18 GMT, December E-mini NASDAQ-100 Index futures are trading 15402.75, up 25.25 or +0.16%.

Tesla Inc fell 1% I premarket trading as it said on Wednesday its upcoming factories and supply-chain headwinds would put pressure on its margins after it beat Wall Street expectations for third-quarter revenue. By the end of the session, however, Tesla was up 3.26%.

The biggest movers were Match Group Inc, Peloton Interactive and Netflix, which posted gains of 10.29%, 4.61% and 4.48%, respectively.

Late in the session, the index is pulling back from its intraday high after Intel Corp reported third-quarter revenue below Wall Street expectations as it trails behind rivals with faster chips to meet demand for computing devices for hybrid work. Shares of Intel, one of the world’s largest chipmakers, fell 4% in extended trading.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reestablished on Thursday after buyers took out 15446.50. A trade through 15702.25 will reaffirm the uptrend.

A move through 14585.50 will change the main trend to down. This is not likely, but the index is trading inside the window of time for a closing price reversal top.

A closing price reversal top is a potentially bearish chart pattern that could lead to an eventual change in trend, but most often leads to the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 15301.00 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 15702.25 to 14367.75. The index is trading on the strong side of its retracement zone at 15192.50 to 15035.00, making it support.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index futures contract early Friday is likely to be determined by trader reaction to 15381.25.

Bullish Scenario

A sustained move over 15381.25 will indicate the presence of buyers.

Bearish Scenario

A sustained move under 15381.25 will signal the presence of sellers. This would put the index in a position to form a potentially bearish closing price reversal top on the daily chart.

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