E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 28, 2018 Forecast

December E-mini NASDAQ-100 Index futures are inching higher on Wednesday shortly after the cash market opening. The move is being driven primarily by short-covering and some bargain-hunting.

Aggressive counter-trend buyers may be betting that the U.S.-China meeting this weekend may bring both countries closer to ending the current trade dispute. Traders are also preparing for a speech by Fed Chair Jerome Powell at 1700 GMT. Stocks could extend the rally if he softens his tone over future interest rate hikes. However, he is probably going to reiterate his call for gradual rate hikes.

At 1459 GMT, December E-mini NASDAQ-100 Index futures are trading 6744.75, up 32.25 or +0.48%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 6449.50 will signal a resumption of the downtrend. This is followed closely by another main bottom at 6385.25. A trade through 7231.00 will change the main trend to up.

The minor trend is down. A trade through 6934.50 will change the minor trend to up. This will also shift momentum to the upside.

The index is currently trading inside a retracement zone bordered by 6822.75 to 6609.00.

The short-term range is 7231.00 to 6449.50. Its retracement zone at 6822.75 to 6932.50 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the first upside target is the 50% level at 6822.75. On the downside, the nearest support is a Fibonacci level at 6609.00.

Bullish Scenario

The first upside target is 6822.75. Look for sellers on the first test of this level. Overtaking it could create the momentum needed to drive the index into a potential resistance cluster at 6932.50 to 6934.50.

Bearish Scenario

The first downside target is 6609.00. Counter-trend buyers could come in on the first test of this level. Crossing to the weak side of this level will indicate the selling is getting stronger. This could lead to a 50% retracement of the first leg up from 6449.50.