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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Testing 11550.50 to 11761.75 RT Zone into Close

By:
James Hyerczyk
Published: Oct 27, 2020, 19:42 GMT+00:00

The price action indicates that the direction of the index into the close is likely to be determined by trader reaction to the 50% level at 11550.50.

E-mini NASDAQ-100 Index

In this article:

December E-mini NASDAQ-100 Index futures are moving higher on Tuesday, bucking the intraday trend of the other two major indices. Concerns over the coronavirus is leading investors to further buy shares of the so-called-stay at home trade, which is made up of stocks that benefit from people staying inside. Online retailers Shopify and Amazon rose 3.3% and 2%, respectively. Zoom Video gained more than 1%. Microsoft advanced nearly 2%.

At 18:46 GMT, December E-mini NASDAQ-100 Index futures are trading 11542.75, up 50.50 or +0.44%.

In stock news, AMD said it was buying rival Xilinx in a $35 billion all-stock deal in a push for the data center market. Xilinx gained 8.8% on the news. AMD shares flipped 4.1%.

Traders are also gearing up for Microsoft earnings after the bell on Tuesday. The technology saw revenue grow 13% during the second quarter despite the pandemic.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A move through 11343.25 will indicate the selling pressure is getting stronger. A trade through 11197.50 will change the main trend to down.

The minor trend is down. This is controlling the momentum. A trade through 12022.00 will change the minor trend to up. This will shift momentum to the upside.

The intermediate retracement zone at 11550.50 to 11761.75 is potential resistance.

The short-term range is 10656.50 to 12249.00. Its retracement zone at 11452.75 to 11264.75 is support. This zone stopped the selling at 11343.25 on Monday.

Short-Term Outlook

The price action on Tuesday indicates that the direction of the index into the close is likely to be determined by trader reaction to the 50% level at 11550.50.

Bullish Scenario

A sustained move over 11550.75 will indicate the presence of buyers. If this is able to create enough upside momentum into the close then look for the rally to possibly extend into the intermediate Fibonacci level at 11761.75.

Bearish Scenario

A sustained move under 11550.50 will signal the presence of sellers. This could trigger a break into the short-term 50% level at 11452.75. If this level fails as support, the selling could extend into yesterday’s low at 11343.25, followed by the short-term Fibonacci level at 11264.75.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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