E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trading on Strong Side of Minor Pivot at 16172.50

December E-mini NASDAQ-100 Index futures are inching higher early Monday as traders try to claw back last week’s losses. The tech-related index was pressured last week as surging consumer prices curbed investor risk appetite, and stoked worries of a protracted wave of red hot inflation.

At 08:09 GMT, December E-mini NASDAQ-100 Index futures are trading 16227.50, up 34.75 or +0.21%.

After getting routed by the inflation news on Wednesday, the index stabilized with chipmakers providing most of the support. The Philadelphia SE Semiconductor Index gained 1.9%, bouncing back from its worst session in more than six weeks, driven by gains in Nvidia Corp after brokerage Susquehanna raised the chipmaker’s price target. The index was also supported on Friday by mega-tech stocks, Microsoft and Apple Inc, which gained 1.29% and 1.43%, respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 16448.50 will signal a resumption of the uptrend. A move through 15273.75 will change the main trend to down.

The minor trend is also up. A trade through 16243.00 will make 15896.50 a new minor bottom.

The minor range is 16448.50 to 15896.50. The index is currently trading on the strong side of its pivot at 16172.50.

The short-term range is 15273.75 to 16448.50. Its 50% level at 15861.00 is support.

Additional support comes in at 15517.00 and 15408.00 to 15162.50.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to 16172.50.

Bullish Scenario

A sustained move over 16172.50 will indicate the presence of buyers. If this move generates enough upside momentum then look for a surge into the record high at 16448.50.

Bearish Scenario

A sustained move under 16172.50 will signal the presence of sellers. This could extend the selling into 15896.50, followed closely by 15861.00.

The pivot at 15861.00 is a potential trigger point for an acceleration to the downside with the next targets 15517.00 and 15408.00. The latter is the last potential support before the 15273.75 main bottom.

The value zone is 15408.00 to 15162.50. Look for buyers on a test of this area.

Side Notes

Watch the price action and read the order flow on a test of 16172.50. Trader reaction to this price will determine whether the index tests 16448.50 or forms a potentially bearish secondary lower top.