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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Showing Early Signs of Closing Price Reversal Bottom

·3-min read

June E-mini NASDAQ-100 Index futures are trading higher in the pre-market session on Tuesday after touching its lowest level since February 2021. Although it’s early, the price action suggests the buying may be greater than the selling at current price levels, putting the index in a position to post a potentially bullish closing price reversal bottom.

At 07:20 GMT, June E-mini NASDAQ-100 Index futures are trading 12376.00, up 182.25 or +1.49%. This is up from an intraday low of 12102.25. On Monday, the Invesco QQQ Trust settled at $297.21, down $12.04 or -3.89%.

The early weakness was a continuation of the sell-off from the previous session. That move came as inflation fears continued to hit markets on all sides. On Monday, shares of Meta Platforms and Alphabet fell 3.7% and 2.8%, respectively. Shares for Tesla dropped more than 9%.

Looking ahead, Peloton Interactive is set to report earnings before the bell. Coinbase, Roblox, RealReal and Allbirds are expected to report earnings on Tuesday after the market close.

Meanwhile, the volatility could continue as investors prepare for the release of Wednesday’s major U.S. Consumer Price Index (CPI) report.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the intraday low at 12102.25 will signal a resumption of the downtrend. A move through 13555.25 will change the main trend to up.

The minor range is 13555.25 to 12102.25. Its pivot at 12828.75 is the nearest upside target. This is followed by a short-term retracement zone at 13685.50 to 14059.25.

On the downside, the major target is the long-term retracement zone at 11671.25 to 10468.25.

Daily Swing Chart Technical Forecast

The direction of June E-mini NASDAQ-100 Index futures on Tuesday is likely to be determined by trader reaction to 12193.75.

Bullish Scenario

A sustained move over 12193.75 will indicate the presence of aggressive countertrend buyers. If this move creates enough upside momentum then look for the move to continue into the pivot at 12828.75.

Since the trend is down, sellers could come in on the first test of 12828.75. Overtaking it, however, could trigger an acceleration to the upside with 13555.25 a potential target.

Bearish Scenario

A sustained move under 12193.75 will signal the presence of sellers. This could lead to a retest of the intraday low at 12102.75. An aggressive move through this level could trigger an acceleration into the long-term 50% level at 11671.25.

Side Notes: A close over 12193.75 will form a closing price reversal bottom. If confirmed, this could trigger the start of a minimum 2-day countertrend rally.

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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