E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 12710.25, Weakens Under 12588.25

March E-mini NASDAQ-100 Index futures rallied on Tuesday, recovering some of its sharp losses from the previous session, as investors shrugged off concerns over the COVID-19 spread and the uncertainty ahead of the Senate runoff elections in Georgia.

Sentiment also got a boost from stronger-than-expected U.S. manufacturing data, which may have encouraged investors to increase their bets for a strong global economic recovery.

At 22:00 GMT, March E-mini NASDAQ-100 Index futures were trading 12803.50, up 118.00 or +0.93%.

In stock related news, Chipmaker Micron Technology Inc rose 4.3% after Citigroup raised its rating on the stock to “buy” on expectations of a recovery in demand and pricing for DRAM chips.

U.S.-listed shares of China Telecom Corp Ltd and China Mobile Ltd gained 8.8% and 9.3%, respectively, while those of China Unicom Hong Kong Ltd advanced 11.8% after the NYSE reversed its decision to delist the stocks.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 12959.75 will negate Monday’s closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 12461.00.

A move through 12522.50 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day sell-off or even a change in trend to down.

The first minor range is 12461.00 to 12959.75. Its 50% level at 12710.25 is potential support.

The second minor range is 12217.00 to 12959.75. Its 50% level at 12588.25 was straddled on Monday and tested successfully on Tuesday.

Short-Term Outlook

The price action on Tuesday suggests a bullish tone could develop on a sustained move over 12710.25, while traders could flip to the bearish side on a sustained move under 12588.25.

Ultimately, it all comes down to how traders react to Monday’s range. A trade through 12959.75 will signal a resumption of the uptrend, while a move through 12522.50 will confirm the closing price reversal top and shift momentum to the downside.