E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weekly Chart Strengthens Over 7290.25, Weakens Under 7154.50

Based on last week’s price action and the close at 7031.25, the direction of the December E-mini NASDAQ-100 Index futures contract this week is likely to be determined by trader reaction to the short-term 50% level at 7154.75.
James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading higher early Monday. Traders are attempting to resume last week’s rally. That move was fueled by the optimism generated by the outcome of last week’s mid-term elections. Not only did the results come out as expected, thus avoiding widely expected volatility, they also lifted the cloud of uncertainty that had fueled nearly a month of volatile price swings in October.

Weekly December E-mini NASDAQ-100 Index

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart. However, momentum shifted to the upside with the formation of a closing price reversal bottom at 6580.50 the week-ending November 2 and the subsequent confirmation last week.

The main trend will change to up on a move through 7728.75. A move through 6580.50 will negate the closing price reversal bottom. This will also signal a resumption of the downtrend with the next targets coming in at 6399.75 and 6385.25.

The main range is 5916.75 to 7728.75. Its retracement zone at 6822.75 to 6609.00 is the main support.

The short-term range is 7728.75 to 6580.50. Its retracement zone at 7154.75 to 7290.25 is the primary upside target. Since the main trend is down, sellers are coming in on a test of this zone. They are trying to form a secondary lower top. If successful, sellers are going to take another shot at the downside. Look for the counter-trend rally to continue if buyers take out 7290.25 with conviction.

Weekly December E-mini NASDAQ-100 Index (Close-Up)

Weekly Swing Chart Technical Forecast

Based on last week’s price action and the close at 7031.25, the direction of the December E-mini NASDAQ-100 Index futures contract this week is likely to be determined by trader reaction to the short-term 50% level at 7154.75.

A sustained move under 7154.75 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the major retracement zone at 6822.75 to 6609.00.

Overtaking and sustaining the rally over 7154.75 will signal the presence of buyers. The first upside target is the short-term Fibonacci level at 7290.25. We could see selling on the first test of this level, however, taking it out with conviction could trigger an acceleration to the upside.

The weekly chart is wide open over 7290.25 with the next major target coming in at 7728.75.

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