E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 13163.25, Strengthens Over 13385.50

March E-mini NASDAQ-100 Index futures are trading lower late in the session on Wednesday as a busy week of earnings gained momentum, with upbeat results from Microsoft cushioning the fall in NASDAQ futures ahead of the Federal Reserve’s policy statement later in the day.

At 19:17 GMT, March E-mini NASDAQ-100 Index futures are at 13276.00, down 209.50 or -1.55%.

Microsoft Corp gained 2.3% premarket, as the software maker continues to benefit from remote working and learning trends globally.

Microsoft’s results set a positive precedent for other technology-related companies including Apple Inc, Tesla and Facebook Inc, which are set to report quarterly numbers later in the day.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside earlier in the session.

A trade through 12727.00 will change the main trend to down. Taking out 13599.75 will signal a resumption of the uptrend.

The minor trend is down. It changed to down on Wednesday when sellers took out Monday’s low at 13189.00. This move shifted momentum to the downside.

The minor range is 13599.75 to 13171.25. Its 50% level or pivot at 13385.50 is new resistance

The first short-term range is 12727.00 to 13599.75. Its 50% level at 13163.25 is support. It stopped the selling at 13171.25 earlier in the session.

The second short-term 50% support is 13045.50. The third short-term 50% support is 12908.25.

Short-Term Outlook

The direction of the March E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 13163.25.

Bullish Scenario

A sustained move over 13163.25 will indicate the return of buyers. If this creates enough upside momentum then look for a rally into 13385.50. Overtaking this level will indicate the buying is getting stronger with 13599.75 the next likely target.

Bearish Scenario

A sustained move under 13163.25 will signal the presence of sellers. This could lead to a labored break with potential downside targets coming in at 13045.50 and 12908.25. Taking out the latter could trigger a further break into the main bottom at 12727.00. The trend will change to down if this bottom fails to hold.