E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 13940.25, Weakens Under 13786.00

June E-mini NASDAQ-100 Index futures closed lower on Tuesday as investors looked to the first-quarter earnings season for hints of corporate recovery from the COVID-19 pandemic and reasons to justify high valuations.  Tesla Inc was a drag on the technology-based index as its shares fell after reports of a fatal crash by one of its automated cars.

On Monday, June E-mini NASDAQ-100 Index futures settled at 13897.25, down 132.25 or -0.95%.

The electric-car maker slid 3.4% after a Tesla vehicle believed to be operating without anyone in the driver’s seat crashed into a tree on Saturday north of Houston, killing two occupants. The stock was the biggest drag on the NASDAQ Composite. An 8.4% drop over the weekend in bitcoin, in which Tesla has an investment, also weighed on its share price.

Microsoft Corp, Amazon.com Inc and Nvidia Corp also weighed on the technology-driven index as analysts awaited results this week and next that form the bulk of earnings season.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 14059.50 will signal a resumption of the uptrend. Since there is no resistance over this price, we could see an acceleration to the upside.

The minor trend is also up. A new minor top was formed at 14059.50. A trade through this level will indicate the buying is getting stronger. This will turn 13821.00 into a new minor bottom.

The minor trend will change to down on a trade through 13512.50.

The first minor range is 14059.50 to 13821.00. Its pivot comes in at 13940.25.

The second minor range is 13512.50 to 14059.50. Its 50% level at 13786.00 is potential support, and a potential trigger point for an acceleration to the downside.

The main range is 12609.75 to 14059.50. If the minor trend changes to down then look for the selling to extend into its retracement zone at 13334.50 to 13163.50.

Daily Swing Chart Technical Forecast

Based on yesterday’s price action, the direction of the June E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to the minor pivot at 13940.25.

Bullish Scenario

A sustained move over 13940.25 will indicate the presence of buyers. If this creates enough upside momentum then look for a test of the minor top at 14059.50. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 13940.25 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the next minor 50% level at 13786.00. This is a potential trigger point for an acceleration to the downside with 13512.50 the next likely downside target.

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