E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Sustained Move Over 6408.00 Extremely Bullish

Despite two consecutive weekly setbacks in the Dow and S&P 500 Index, the December E-mini NASDAQ-100 Index managed to eke out another record close after hitting a record high earlier in the week.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 6358.50 will signal a resumption of the uptrend. Due to the prolonged move up in terms of price and time, the index also begins the week in the window of time for a potentially bearish closing price reversal top.

After taking out 6358.50, enough buyers have to come in to extend the rally because a lower close will indicate the selling is greater than the buying at current price levels.

The short-term range is 5760.00 to 6358.50. Its retracement zone at 6059.25 to 5988.50 is the primary downside target.

The main range is 5577.00 to 6358.50. Its retracement zone is 5967.75 to 5875.50.

Combining the retracement zones makes 5988.50 to 5967.75 the best support cluster.

Weekly Technical Forecast

Based on last week’s close at 6313.25, the direction of the index this week is likely to be determined by trader reaction to last week’s high at 6358.50.

Taking out 6358.50 will signal the presence of buyers. This could lead to a test of a steep long-term uptrending angle at 6408.00. Overtaking this angle and sustaining the move will put the index in an extremely bullish position.

The inability to overtake 6358.50, or taking it out and breaking back under last week’s close at 6313.25 will indicate the presence of sellers. The first uptrending support angle comes in at 6217.00. This is followed by another steep uptrending angle at 6176.00.

The daily chart starts to open up under 6176.00 with the next target the 50% level at 6059.25.

This is a holiday week in the U.S. so be careful buying strength and selling weakness because of below average volume.