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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trading Between 50% Levels at 6974.50 and 6861.75 Indicates Investor Indecision

By:
James Hyerczyk
Published: Nov 5, 2018, 18:48 UTC

Based on the current price at 6895.75, and the earlier price action, the direction of the December E-mini NASDAQ-100 Index futures contract into the close is likely to be determined by trader reaction to the short-term 50% level at 6861.75.

E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower at the mid-session, bucking the intraday trend of the other two major U.S. stock indexes. The selling was led by sharp declines in Apple and Amazon. Apple shares dropped 3.3 percent while Amazon shares fell 4 percent. Apple was driven lower by a downgrade by Rosenblatt Securities amid expectations of lower iPhones sales. Sellers hit Amazon after President Trump said the administration was looking into antitrust violations committed by the e-commerce giant.

At 1804 GMT, December E-mini NASDAQ-100 Index futures are trading 6895.75, down 84.50 or -1.21%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However daily momentum is trending higher. Today’s price action made 7143.25 a new main top. A trade through this level will change the main trend to up. A move through 6580.50 will signal a resumption of the downtrend.

The minor trend is up. This is why momentum is trending higher. A trade through 7143.25 and 7175.00 will indicate the buying is getting stronger.

On the upside the main resistance zone is 7154.75 to 7290.25. On the downside, the main support zone is 6822.75 to 6609.00.

One short-term range is 7368.50 to 6580.50. Its retracement zone at 6974.50 to 7067.50 is acting like resistance on Monday.

The new short-term range is 6580.50 to 7143.25. Its retracement zone at 6861.75 to 6795.50 is the next downside target. Inside this zone is a major 50% level at 6822.75.

Daily Swing Chart Technical Forecast

Based on the current price at 6895.75, and the earlier price action, the direction of the December E-mini NASDAQ-100 Index futures contract into the close is likely to be determined by trader reaction to the short-term 50% level at 6861.75.

A sustained move over 6861.75 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible retest of 6974.50 then today’s intraday high at 6998.50. This could trigger a short-covering rally into 7067.50.

Taking out 6861.75 late in the session could drive the index into 6822.75 then 6795.50. The latter is the trigger point for an acceleration to the downside with 6608.09 the next major downside target.

With volume well below average, it’s going to take a lot of effort to drive the index through the series of bottoms at 6861.75, 6822.75 and 6795.50, but if these levels are broken the payoff could be a steep sell-off into 6609.00.

 

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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