E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Upside Momentum Could Trigger Breakout into 15702.25
December E-mini NASDAQ-100 Index futures are expected to open higher on Wednesday based on the pre-market trade after struggling to find direction earlier in the session. Netflix shares are helping to put a lid on the index after it remained sluggish following the release of its quarterly report after the close on Tuesday.
At 13:24 GMT, December E-mini NASDAQ-100 Index futures are trading 15408.25, up 9.75 or +0.06%.
CNBC reported that Netflix posted its hotly-anticipated third-quarter earnings report with the streaming giant adding 4.4 million subscribers during the period. Wall Street analysts were expecting 3.84 million additions, according to estimates from StreetAccount. However, its shares, which are up 20% in the last three months, were down 2% in premarket trading.
Deutsche Bank downgraded Netflix after the report, saying its stock valuation was hard to justify with revenue growth set to slow next year. The firm also said strong fourth quarter subscriber additions are already baked into the stock.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirm on Tuesday when buyers took out the 15399.25 main top. A trade through 14585.50 will change the main trend to down.
The main range is 15702.25 to 14367.75. The index is trading on the strong side of its retracement zone at 15192.50 to 15035.00, making it new support.
Daily Swing Chart Technical Forecast
The direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to 15398.50.
A sustained move over 15398.50 will indicate the presence of buyers. Taking out the intraday high at 15429.50 will indicate the buying is getting stronger. The daily chart indicates there is plenty of room to the upside so don’t be surprised by an acceleration to the upside with 15702.25 the next major target.
A sustained move under 15398.50 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the Fibonacci level at 15192.50.
Since the main trend is up, look for buyers on the first test of 15192.50. If this level fails then look for the selling to possibly extend into the 50% level at 15035.00.