E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 7724.00, Strengthens Over 7783.00

Based on the early price action and the current price at 7750.25, the direction of the December E-mini NASDAQ-100 Index futures the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 7724.00.
James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower on Monday shortly after the cash market opening. Volume is below average and the index is trading inside Friday’s range, suggesting investor indecision and impending volatility. Investors don’t seem to be in a hurry to drive the index in either direction early in the session with most of the major players on the sidelines ahead of the U.S.-China trade talks on October 10-11.

At 14:19 GMT, December E-mini NASDAQ-100 Index futures are trading 7750.25, down 17.00 or -0.21%.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at 7474.25 on October 3 and the subsequent confirmation of the chart pattern on Friday.

The main trend will change to up on a trade through 7973.75. A move through 7474.25 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 7244.50 to 8002.50. Its retracement zone at 7624.50 to 7535.00 is support. This zone was tested successfully last week.

The short-term range is 7973.75 to 7474.25. Its retracement zone at 7724.00 to 7783.00 is currently being tested. This zone is controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early price action and the current price at 7750.25, the direction of the December E-mini NASDAQ-100 Index futures the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 7724.00.

Bullish Scenario

A sustained move over 7724.00 will indicate the presence of buyers. This could trigger a rally into a resistance cluster at 7781.75 to 7783.00. Since the main trend is down, sellers could come in on the first test of this zone.

Taking out 7783.00 could trigger an acceleration to the upside with the next target angle coming in at 7877.75.

Bearish Scenario

A sustained move under 7724.00 will signal the presence of sellers. The daily chart is wide open under this level with the next target the main 50% level at 7624.50, followed by an uptrending Gann angle at 7588.50.

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