E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Rangebound for Three Weeks, Look for Heightened Volatility

The E-Mini NASDAQ-100 Index futures contract closed higher last week, outperforming the E-Mini S&P 500 Index and the E-Mini Dow Jones Industrial Average futures contracts. The index of technology stocks was primarily driven higher by strong performances by Apple and Amazon.

For the week, December E-Mini NASDAQ-100 Index futures settled at 7655.25, up 104.75 or 1.39%.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 7723.50 will signal a resumption of the uptrend after four weeks of consolidation. The main trend will change to down on a trade through 7193.50.

The short-term range is 7193.50 to 7723.50. Its 50% level or pivot at 7458.50 is support. This level has held for four weeks.

The intermediate range is 6986.50 to 7723.50. Its retracement zone at 7355.00 to 7268.00 is the next downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.

The main range is 6399.75 to 7723.50. Its retracement zone at 7061.50 to 6905.50 is the primary downside target.

Weekly Technical Forecast

There is no short-term trigger point in the market for an immediate acceleration in either direction. This week, buyers and sellers are going to have to work to drive the market to levels that could trigger breakouts.

Bullish Scenario

Based on last week’s close at 7655.50, if the upside momentum continues early in the week then look for buyers to make a run at the all-time high at 7723.50. This is followed by a steep uptrending Gann angle at 7882.50.

Overtaking 7882.50 will indicate the buying is getting stronger. If this generates enough upside momentum then look for a possible drive into 8063.75. Crossing to the strong side of this angle will put the index in an extremely bullish position.

Bearish Scenario

The first two downside targets are 7458.50 and an uptrending Gann angle at 7434.50. This is followed by another 50% level at 7355.00.

The selling pressure could extend under 7355.00 with the next target a Fibonacci level at 7268.00, followed by a long-term uptrending Gann angle at 7231.75.

The weekly chart begins to open up to the downside under 7231.75 with the main bottom at 7193.50 the next target.