E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trend Changes to Down on Trade Through 12727.00

March E-mini NASDAQ-100 Index futures are trading higher early Monday after reversing earlier losses. Despite turning higher, traders are still gearing up for a volatile trading session with investors keeping a close eye on the ongoing battle between aggressive speculators and goliath hedge funds.

U.S. hedge funds last week bought and sold the most stock in more than 10 years amid wild swings in GameStop Corp shares that many had bet against, but their market exposure to stocks is still near record levels, according to analysis by Goldman Sachs Inc.

At 05:20 GMT, March E-mini NASDAQ-100 Index futures are at 12961.75, up 50.50 or +0.39%.

Investors face another busy week of earnings with 99 S&P companies set to report. The major NASDAQ releases include Alphabet, Amazon, Alibaba and Biogen.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 12727.00 will change the main trend to down. A move through 13599.75 will signal a resumption of the uptrend.

The main range is 10936.25 to 13599.75. Its retracement zone at 12245.25 to 11936.50 is the primary downside target and potential value area. Buyers could come in on a test of this area.

On the upside, a series of 50% levels line up at 12908.50, 13045.50 and 13163.50. A Fibonacci level at 13266.50 comes in at the top of the range.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the March E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to 12908.50.

Bullish Scenario

A sustained move over 12908.50 will indicate the presence of buyers. This could trigger a labored rally with potential targets coming in at 13045.50, 13163.50 and 13266.50. The latter is a potential trigger point for an acceleration to the upside with 13599.75 the next likely target.

Bearish Scenario

A sustained move under 12908.25 will signal the presence of sellers. This could lead to a retest of 12727.25, followed by the main bottom at 12727.00.

Taking out the main bottom at 12727.00 will change the main trend to down. This could trigger an acceleration to the downside with 12491.25 and 12461.00 the next likely targets. These are the last two potential support levels before the main retracement zone at 12245.25 to 11936.50.