Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Be Building Support Base for Rally into 7318.25 to 7415.25
E-mini NASDAQ-100 Index futures are edging higher during the early trade as the market continues to consolidate over a key retracement zone. Holding above this zone could create the upside momentum needed fuel a retracement of the recent break. If successful, this may eventually lead to the formation of a secondary lower bottom.
At 0702 GMT, December E-mini NASDAQ-100 Index futures are trading 7105.00, up 28.50 or +0.41%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 6907.75 will signal a resumption of the downtrend. A move through 6901.00 will reaffirm the downtrend. This could trigger a further break into a series of bottoms at 6590.50, 6493.00, 6399.75 and 6385.25.
The main range is 6385.25 to 7728.75. Its retracement zone is 7057.00 to 6898.50. This zone provided support last week and helped put in the low at 6907.75.
If the short-term range is 7728.75 to 6907.75 then its retracement zone at 7318.25 to 7415.25 will become the primary upside target.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the main 50% level at 7057.00.
A sustained move over 7057.00 will indicate the presence of buyers. If this move can create enough upside momentum then look for a potential rally into the short-term retracement zone at 7318.25 to 7415.25.
A sustained move under 7057.00 will signal the presence of sellers. This price is a potential trigger point for an acceleration into 6907.75, 6901.00 and 6898.50.
The daily chart starts to open up to the downside under 6898.50 with 6590.50 the next major downside target.
This article was originally posted on FX Empire
