Technical Analysis of NASDAQ-100 (NQ) E-mini Index Futures – Struggling Inside 15069.75 to 14920.25

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Prices likely retreated after the spot market closed, with investors assessing the risk of contagion from the problems of indebted developer China Evergrande pending the results of a Federal Reserve policy meeting.

NASDAQ-100 Component shares ended mixed with Activision Blizzard Inc and Electronic Arts ending down 4.13% and 2.56% respectively. Seagen Inc and Moderna Inc closed up 3.74% and 2.53% respectively.

Technical analysis of the daily swing chart

The main trend is upward on the daily swing chart, however, the momentum is downward. A trade up to 14699.00 will change the main downtrend. A move to 15702.25 will signal a resumption of the uptrend.

The minor trend is downward. It’s controlling momentum. A trade up to 14807.50 will indicate that selling pressure is building. A move through 15532.50 will change the minor trend upward.

The main range is 13450.00 to 15702.25. If the main trend changes lower, wait for the sell to eventually expand into its retracement zone between 14576.00 and 14310.25.

The middle range is 14,437.00 to 15,702.25. The index is currently testing its retracement zone between 15069.75 and 14920.25. How traders react to this zone will likely determine the direction of the market for the rest of the week.

The short-term range is 15,702.25 to 14,807.50. Its 15255-15360.50 retracement area is the next bullish target. Since the main trend is down, look for sellers on the first test of this area.

Technical forecasts of the daily swing chart

The direction of the E-mini NASDAQ-100 index for December early Wednesday will likely be determined by the reaction of traders at 15,069.75.

Bearish scenario

A sustained move below 15069.75 will indicate the presence of sellers. The first bearish target is the Fibonacci level at 14,920.25. If that level fails, wait for the sell to eventually expand to 14,807.50, followed by 14,699.00.

Withdrawing 14699.00 will change the main downtrend. If this creates sufficient bearish momentum, look for the continuation of the breakout between 14576.00 and 14310.25. Within that range is a main floor at 14,437.00. Aggressive countertrend buyers could step in on a test of this major retracement area.

Bullish scenario

Holding 14920.25 will signal that the selling pressure is weakening. This may trigger a rally of cover at 15,069.75.

Exceeding and maintaining a move above 15069.75 will indicate that counter-trend buying is strengthening. If this move creates enough bullish momentum, look for a possible surge from 15255.00 to 15360.50.

December’s E-mini NASDAQ-100 index futures were down slightly late Tuesday after abandoning earlier gains. The index traded higher for most of the session on a technical rebound from yesterday’s steep drop, but the countertrend rally fizzled out due to the lack of buyers. The futures market close represents a divergence from the NASDAQ Composite spot market which ended lower for the day.

At 8:20 p.m. GMT, December’s E-mini NASDAQ-100 index futures are trading at 14,979.25, down 30.25 or -0.20%.

Prices likely retreated after the spot market closed, with investors assessing the risk of contagion from the problems of indebted developer China Evergrande pending the results of a Federal Reserve policy meeting.

NASDAQ-100 Component shares ended mixed with Activision Blizzard Inc and Electronic Arts ending down 4.13% and 2.56% respectively. Seagen Inc and Moderna Inc closed up 3.74% and 2.53% respectively.

Technical analysis of the daily swing chart

The main trend is upward according to the daily swing chart, however, the momentum is downward. A trade up to 14699.00 will change the main downtrend. A move to 15702.25 will signal a resumption of the uptrend.

The minor trend is downward. It’s controlling momentum. A trade up to 14807.50 will indicate that selling pressure is building up. A move through 15532.50 will change the minor trend upward.

The main range is 13450.00 to 15702.25. If the main trend changes lower, wait for the sell to eventually expand into its retracement zone between 14576.00 and 14310.25.

The middle range is 14,437.00 to 15,702.25. The index is currently testing its retracement zone between 15069.75 and 14920.25. The reaction of traders to this zone will likely determine the direction of the market for the rest of the week.

The short-term range is 15,702.25 to 14,807.50. Its 15255-15360.50 retracement area is the next bullish target. Since the main trend is down, look for sellers on the first test of this area.


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