E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trade Through 14818.00 Confirms Reversal Bottom
December E-mini NASDAQ-100 Index futures finished higher on Friday after reversing early session weakness. The recovery was strong enough to produce a dramatic closing price reversal bottom that could trigger the start of a 2 to 3 day counter-trend rally.
Investors began the final quarter of 2021 in a buying mood boosted by positive economic data, progress in the battle against COVID, and Washington developments on the potential passage of an infrastructure bill.
On Friday, December E-mini NASDAQ-100 Index futures settled at 14761.75, up 79.25 or +0.54%.
Following a weak start to the session, the index gained momentum after the White House announced U.S. President Joe Biden was getting more involved in negotiations over the infrastructure spending bill being debated on Capitol Hill.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum may be getting ready to shift to the upside.
A trade through 14818.00 will confirm Friday’s closing price reversal bottom. This will shift momentum to the upside. A move through 15399.25 will change the main trend to up.
A move through 14537.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The main range is 12915.00 to 15702.25. Its retracement zone at 14308.50 to 13979.75 is a major support area. It is controlling the near-term direction of the index.
The minor range is 15399.25 to 14537.00. Its 50% level or pivot at 14968.25 is the nearest upside target. Look for sellers on the first test of this level.
The short-term range is 15702.25 to 14537.00. Its retracement zone at 15119.75 to 15257.25 is the last potential resistance area before the 15399.25 main top.
Daily Swing Chart Technical Forecast
The direction of the December E-mini NASAQ-100 Index on Monday is likely to be determined by trader reaction to 14677.50.
A sustained move over 14677.50 will indicate the presence of buyers. Taking out 14818.00 will confirm the closing price reversal bottom. This could trigger a surge into 14968.25. Look for sellers on the first test of this level.
Overtaking 14968.25 will indicate the buying is getting stronger. This could trigger a further rally into 15119.75 to 15257.25. With the main trend down, look for sellers on the first test of this zone.
A sustained move under 14677.50 will signal the presence of sellers. This could trigger a retest of 14537.00.
Taking out 14537.00 will indicate the selling pressure is getting stronger. This could trigger a further break into the main bottom at 14437.00, followed by the major retracement zone at 14308.50 to 13979.75. Look for buyers on the first test of this area since it is a value zone.