E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7138.25, Weakens Under 7057.00

Based on Friday’s close at 7106.50 and the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to the short-term pivot at 7138.25.
James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index futures are trading lower shortly after pre-session opening. The market is currently testing a major 50% level. Taking out Friday’s low at 7092.75 has helped make 7368.50 a new main top. At 0042 GMT, December E-mini NASDAQ-100 Index futures are trading 7069.50, down 37.00 or 0.52%.

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Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 6907.75 will signal a resumption of the downtrend. A move through 7368.50 will change the main trend to up.

The major support is the 50% to 61.8% zone at 7057.00 to 6898.50. This zone stopped the selling on October 11 at 6907.75.

The short-term range is 6907.75 to 7368.50. Its 50% level or pivot at 7138.25 is controlling the short-term direction of the index.

The main range is 7728.75 to 6907.75. Its retracement zone at 7318.25 to 7415.25 is the primary upside target. This zone stopped the rally on October 17 at 7368.50.

Daily Swing Chart Technical Forecast

Based on Friday’s close at 7106.50 and the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to the short-term pivot at 7138.25.

A sustained move under 7138.25 will indicate the presence of sellers. If this creates enough downside momentum then look for a drive into the major 50% level at 7057.00. We could see a technical bounce on the first test of this level because aggressive counter-trend buyers may try to form a secondary higher bottom.

Look out to the downside if 7057.00 is taken out with rising volume. This could create the downside momentum needed to challenge the main bottom at 6907.75 then the major Fibonacci level at 6898.50.

A sustained move over 7138.25 will signal the presence of buyers. This level is a potential trigger point for an acceleration to the upside with potential targets the main 50% level at 7318.25, the main top at 7368.50 and the Fibonacci level at 7415.25.

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