E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Supported by Series of Short-Term Retracement Levels

The E-mini NASDAQ-100 Index futures contract closed lower last week while posting an outside move. The index struggled most of the week to gain traction amid strong rallies in the S&P 500 Index and the Dow Jones Industrial Average. It looks as if buyers favored those two futures contracts because they had more to gain from the easing of tensions over the trade dispute between the United States and China.

December E-mini NASDAQ-100 Index futures settled the week at 7550.50, down 23.00 or -0.30%.

Weekly Swing Chart 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. The main trend will change to down on a move through 7193.50.

The minor trend is also up. A trade through 7343.25 will change the minor trend to down. This will also signal a shift in momentum to down.

The recent choppy trade is being caused by a series of retracement levels. Since the main trend is up, buyers keep coming in on the dips.

The short-term range is 7343.25 to 7723.50. Its 50% level or pivot is 7533.25. The market has straddled this level for three weeks.

The first intermediate range is 7193.50 to 7723.50. Its retracement zone at 7458.50 to 7396.00 has been acting like support.

The second intermediate range is 6986.50 to 7723.50. Its retracement zone at 7355.00 to 7268.00 is additional support.

The main range is 6399.75 to 7723.50. Its retracement zone at 7061.50 to 6905.50 is the main support zone.

Weekly Swing Chart Technical Forecast

Based on last week’s trade and the close at 7550.50, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined this week by trader reaction to the pivot at 7533.25.

A sustained move over 7533.25 will indicate the presence of buyers. If this move generates enough upside momentum then we could see a retest of the main top at 7723.50.

A sustained move under 7533.25 will signal the presence of sellers. This could lead to a labored break with potential targets at 7458.50, 7396.00, 7355.00 and 7343.25.

The weekly chart starts to open up to the downside under 7343.25 with the next target 7268.00, followed by the main bottom at 7193.50. This is another trigger point for an acceleration into 7061.50.