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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Momentum Could Shift if 13677.00 Support Pivot Fails

James Hyerczyk
·2-min read

June E-mini NASDAQ-100 Index futures are trading slightly lower during the pre-market session after striking a fresh record high earlier. The technology weighted index is outperforming the Dow and the S&P 500 Index this week, gaining more than 2.5% on the back of strong performances in Amazon, Netflix, Microsoft and Google-parent Alphabet.

At 07:27 GMT, June E-mini NASDAQ-100 Index futures are trading 13728.00, down 19.75 or -0.14%. This is down from a high of 13841.75.

Daily June E-mini NASDAQ-100 Index
Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early in the session when buyers took out the previous session’s high. A trade through the intraday high at 13841.75 will signal a resumption of the uptrend.

The main trend will change to down on a move through 12609.75. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is ripe for a potentially bearish closing price reversal top. If confirmed, this won’t change the trend, but it will shift momentum to the downside.

The minor trend is also up. A trade through 13512.50 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 13512.50 to 13841.75. Its 50% level at 13677.00 is the nearest support.

The main range is 13888.00 to 12200.00. If momentum shifts to the downside then its 50% to 61.8% retracement zone at 13243.00 to 13044.00 will become the primary target area.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index on Friday is likely to be determined by trader reaction to 13747.75.

Bullish Scenario

A sustained move over 13757.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 13841.75, followed by the all-time high at 13888.00. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 13757.75 will signal the presence of sellers. The first downside target is the minor pivot at 13677.00. Taking out this level could trigger a further break into the minor bottom at 13512.50. The minor trend will change to down on a trade through this level.

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This article was originally posted on FX Empire