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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trying to Establish Support on Major Fibonacci Level at 6609.00

By:
James Hyerczyk
Published: Dec 17, 2018, 08:11 UTC

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at 6609.00.

E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading slightly higher Monday after reversing early session weakness. The major technology-based index is being supported primarily by mostly higher stocks in Asia. Investors in China may be bargain-hunting, however, the price action suggests buyers are being cautious due to concerns over a weakening economy and lingering fears that the trade dispute between the U.S. and China may escalate.

At 0755 GMT, December E-mini NASDAQ-100 Index futures are trading at 6608.50, up 9.00 or +0.14%.

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. Today’s early weakness helped make 6872.00 a new main top. A trade through this top will change the main trend to up.

A trade through 6535.25 will signal a resumption of the downtrend. This could lead to a test of a pair of main bottoms at 6449.50 and 6385.25.

The longer-term retracement zone is 6822.75 to 6609.00. Early in today’s session, the index is straddling the lower, or Fibonacci level of this range.

The short-term range is 6535.25 to 6872.00. Its 50% level or pivot at 6703.75 is the nearest resistance.

The intermediate range is 7139.00 to 6535.25. Its retracement zone at 6837.25 to 6909.50 is the next resistance area.

Combining the two 50% levels at 6822.75 to 6837.25 creates an important resistance cluster.

Daily Swing Chart Technical forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at 6609.00.

Bullish Scenario

A sustained move over 6609.00 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to extend into the short-term pivot at 6703.75. This is a potential trigger point for an acceleration to the upside with the major 50% level at 6822.75 the next target.

Bearish Scenario

A sustained move under 6609.00 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the next main bottom at 6535.25.

Look for an acceleration to the downside if 6535.25 fails as support. The daily chart indicates there is plenty of room to the downside with potential targets coming in at 6449.50 and 6385.25.

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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