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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Momentum Shifts to Upside on Trade Through 16066.25

·2-min read

December E-mini NASDAQ-100 Index futures are inching lower early Friday ahead of the November jobs report as the market nears the end of a roller-coaster week driven by COVID omicron variant developments.

On Thursday, the technology-driven index settled sharply higher, recovering ground lost over recent sessions as market participants snapped up bargains while digesting the implications of a shifting pandemic.

At 04:52 GMT, December E-mini NASDAQ-100 Index futures are trading 15972.50, down 16.00 or -0.10%. On Thursday, the ETF Invesco QQQ Trust Series 1 settled at $389.93, up +$2.81 or +0.73%.

The November jobs report is set for release Friday morning. Investors expect to see solid jobs growth last month, with economists surveyed by Dow Jones predicting 581,000 jobs added in November.

Daily December E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, Thursday’s closing price reversal bottom suggests momentum may be getting ready to shift to the upside.

A trade through 16066.25 will confirm the chart pattern. This could trigger the start of a 2 to 3 day counter-trend rally.

A move through 15762.75 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through 16456.25.

Early Friday, the index is straddling a pivot at 16020.75.

On the downside, the first support is a pivot at 15676.50. This is followed by a retracement zone at 15567.50 to 15284.50.

On the upside, the nearest resistance is a pivot at 16265.25.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index on Friday is likely to be determined by trader reaction to 16020.75.

Bullish Scenario

A sustained move over 16020.75 will indicate the presence of buyers. Taking out 16066.25 will confirm the closing price reversal top. This will shift momentum to the upside with 16265.25 the next likely upside target. This is the last potential resistance before the 16456.25 main top.

Bearish Scenario

A sustained move under 16020.75 will signal the presence of sellers. This could trigger a retest of the closing price reversal bottom at 15762.75.

Taking out 15762.75 will indicate the selling pressure is getting stronger. This could lead to a test of a pair of 50% levels at 15676.50 and 15567.50. The latter is a potential trigger point for an acceleration into 15284.50.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


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