Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 7685.75, Strengthens Over 7696.25
December E-mini NASDAQ-100 Index futures are trading lower on Wednesday, following through to the downside after yesterday’s steep sell-off. The selling is being fueled today by weakness in Asia and Europe. The move is further proof that investors are becoming more concerned over the spreading weakness in the global economy after a report from the ISM said U.S. manufacturing activity contracted to its worst level since June 2009.
At 07:46 GMT, December E-mini NASDAQ-100 Index futures are trading 7664.75, down 30.75 or -0.39%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 7641.00 will signal a resumption of the downtrend.
The minor trend is also down. A new minor top was formed at 7841.50 on Tuesday. A trade through this level will change the minor trend top up. This will also shift momentum to the upside.
The short-term range is 7973.75 to 7641.00. Its retracement zone at 7807.50 to 7846.75 is resistance. This area stopped the selling on Tuesday at 7841.50, helping to form another potentially bearish secondary lower top.
The main range is 7390.00 to 8002.50. Its retracement zone at 7696.25 to 7624.00 is currently being tested. This zone stopped the selling last week at 7641.00. It is controlling the near-term direction of the index.
Daily Technical Forecast
Based on the early price action and the current price at 7664.75, the direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 7685.75.
Bearish Scenario
A sustained move under 7685.75 will indicate the presence of sellers. The first two downside targets are 7641.00 and 7624.00. These are followed closely by an uptrending Gann angle at 7598.00.
The angle at 7598.00 is the trigger point for a potential acceleration to the downside with the next target angle coming in at 7286.00. This is the last potential support angle before the 7390.00 main bottom.
Bullish Scenario
A sustained move over 7685.75 will signal the presence of buyers. The first upside target is the 50% level at 7696.25. Overtaking this level could trigger a short-covering rally. The next potential upside targets are 7806.00, 7807.50 and 7829.75.
This article was originally posted on FX Empire
