E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Upside Bias Develops on Sustained Move Over 11239.25

December E-mini NASDAQ-100 Index futures climbed on Monday on a boost from technology stocks while signs of progress in developing a COVID-19 vaccine and a spurt of multi-billion dollar deals also brightened the mood.

U.S. stocks received a lift early Monday after drugmaker AstraZeneca resumed its British clinical trials of its coronavirus vaccine, one of the most advanced in development.

At 15:23 GMT, December E-mini NASDAQ-100 Index futures are trading 11321.50, up 273.25 or +2.47%.

On Monday, index component Amazon.com rose about 1.6% after the online shopping giant said it is hiring 100,000 more workers in its latest job spree for the United States this year – to keep pace with e-commerce demand that jumped during the pandemic.

Oracle surged 4.3% to near record highs after sources told Reuters that the cloud services firm beat Microsoft in the battle for the U.S. arm of TikTok with a deal structured as a partnership to navigate geopolitical tensions.

Microsoft erased premarket losses to rise 1.7%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through 10833.00. A move through 12444.75 will signal a resumption of the uptrend.

The minor trend is down. A trade through 11554.00 will change the minor trend to up and signal a shift in momentum. A move through 10924 will reaffirm the downtrend.

The minor range is 11554.00 to 10924.00. Its 50% level or pivot at 11239.25 is controlling the direction of the index on Monday.

The short-term range is 12444.75 to 10924.00. Its retracement zone at 11684.75 to 11864.25 is the next upside target.

The intermediate range is 9390.50 to 12444.75. Its retracement zone at 10917.50 to 10557.25 is support. The upper or 50% level of the range provided support last week at 10924.00.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the 50% level at 11239.25.

Bullish Scenario

A sustained move over 11239.25 will indicate the presence of buyers. If this move can create enough upside momentum then look for the rally to possibly extend into 11554.00, followed by 11684.75.

Bearish Scenario

A sustained move under 11239.25 will signal the presence of sellers. This could trigger a break into 10924.00, followed by 10917.50. The latter is a potential trigger point for an acceleration to the downside with the first target the main bottom at 10833.00.