E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7206.50, Weakens Under 7156.25

E-mini NASDAQ-100 Index futures are trading lower early Wednesday after an attempt at a follow-through rally failed to attract enough buyers to extend the move. On Tuesday, the index finished lower, but only after posting a two-sided trade, highlighted by a dramatic rebound rally that almost led to the formation of a potentially bullish closing price reversal bottom.

At 0525 GMT, December E-mini NASDAQ-100 Index futures are trading 7121.25, down 19.00 or -0.27%.

Daily Swing Chart Technical Analysis

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

The major support is a retracement zone at 7057.00 to 6898.50. This zone stopped a sell-off on October 11 at 6097.75 and yesterday at 6944.00.

The short-term range is 7368.50 to 6944.00. Its retracement zone at 7156.25 to 7206.25 is the first upside target. This zone was tested earlier today. Since the main trend is down, sellers are likely to show up on a test of this zone.

The main range is 7728.75 to 6907.75. Overtaking 7206.25 could trigger a rally into its retracement zone at 7318.25 to 7415.25.

Daily Swing Chart Technical Forecast

Based on Tuesday’s close at 7140.25 and the earlier price action, the direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the short-term 50% level at 7156.25.

Bullish Scenario

A sustained move over 7156.25 will indicate the presence of buyers. This could lead to a quick test of 7206.25. Overtaking this Fibonacci level could trigger an acceleration into the main 50% level at 7318.25, followed by the main top at 7368.50 and the main Fibonacci level at 7415.25.

Bearish Scenario

A sustained move under 7156.25 will signal the presence of sellers. The first downside target is the major 50% level at 7057.00.

We could see another acceleration to the downside if 7057.00 is taken out with conviction. The next downside targets are the minor bottom at 6944.00, followed by the main bottom at 6907.75 and the major Fibonacci level at 6898.50.

Look out to the downside if 6898.50 fails as support.