Based on the early price action and the current price at 7915.00, the direction of the December E-mini NASDAQ-100 Index futures contract the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 7910.50.
December E-mini NASDAQ-100 Index futures are trading sharply higher after the cash market opening on Tuesday after a string of stronger-than-expected earnings reports in the banking and healthcare sectors spilled over to the technology sector.
Investors are also showing little concern over U.S.-China trade relations despite dampened hopes of a permanent trade deal. This likely means that investors feel optimistic that an agreement will eventually be reached, but that it will be a complicated process.
Furthermore, as long as the two-sides are still talking, it’s hard to be bearish. But a collapse in talks will be bearish.
At 14:19 GMT, December E-mini NASDAQ-100 Index futures are trading 7915.00, up 57.50 or +0.73%.
The main trend is up according to the daily swing chart. A trade through 7918.50 will signal a resumption of the uptrend. The main trend changes to down on a move through 7583.25.
The short-term range is 7973.75 to 7474.25. Its retracement zone at 7783.00 to 7724.00 is support. Trading above this zone will continue to generate a strong upside bias.
Based on the early price action and the current price at 7915.00, the direction of the December E-mini NASDAQ-100 Index futures contract the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 7910.50.
A sustained move over 7910.50 will indicate the presence of buyers. Taking out last week’s high at 7918.50 will indicate the buying is getting stronger. This could trigger a surge into a downtrending Gann angle at 7956.50.
The angle at 7956.50 is the last potential resistance angle before the main tops at 7973.75 and 8002.50.
A sustained move under 7910.50 will signal the presence of sellers. If this move is able to generate enough downside momentum then look for a potential acceleration to the downside with the next target a downtrending Gann angle at 7818.50, followed by the short-term Fibonacci level at 7783.00.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.