E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 16332.00, Strengthens Over 16434.75

December E-mini NASDAQ-100 Index futures ended higher on Wednesday, bolstered by gain in Nvidia and other tech stocks.

Nvidia rallied 2.9% as it bounced back from a selloff in Big Tech stocks early this week. The graphics chipmaker is now up about 150% in 2021.

Despite the rally, so far this week, the NASDAQ Composite is down about 1.3%, with investors worried that higher interest rates could hurt the valuations of tech and other growth stocks.

On Wednesday, December E-mini NASDAQ-100 Index futures settled at 16366.00, up 54.00 or +0.33%.

In stock related news, Tesla Inc rose as much as 0.6%. In his latest of several recent share sales, CEO Elon Musk sold 934,091 shares of the electric vehicle maker worth $1.05 billion after exercising options to buy 2.15 million shares.

PC makers HP Inc and Dell Technologies jumped 10% and 4.8%, respectively, after they logged a more than four-fold rise in quarterly profits amid increasing demand for personal computers.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the confirmation of the closing price reversal top on November 22.

A trade through 16767.50 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 15896.50 will change the main trend to down.

The minor range is 16767.50 to 16102.00. Its 50% level or pivot is resistance.

The short-term range is 15896.50 to 16767.50. On Wednesday, the index closed on the strong side of its pivot at 16332.00, making it potential support.

The intermediate 50% levels at 16020.50 and 15676.50 are potential support.

The main range is 14367.75 to 16767.50. Its retracement zone at 15567.50 to 15284.50 is a potential value zone so look for new buyers on the first test of this area.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index early Friday is likely to be determined by trader reaction to 16332.00.

Bullish Scenario

A sustained move over 16332.00 will indicate the presence of buyers. The first target is 16434.75. This pivot is a potential trigger point for an acceleration to the upside with 16767.50 the next major target.

Bearish Scenario

A sustained move under 16332.00 will signal the presence of sellers. This could trigger a sharp break into 16102, followed closely by 16020.50. This is the last support before the 15896.50 main bottom.

Taking out 15896.50 will change the main trend to down. This could trigger a break into a pair of 50% levels at 15676.50 and 15567.50.

The best support area and value zone is 15567.50 to 15284.50.