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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 8313.50 Pivot Sets the Tone Today

James Hyerczyk

December E-mini NASDAQ-100 Index futures are trading sharply lower during the pre-market session. After a steady opening, following yesterday’s steep drop, sellers came in heavy about 09:50 GMT, fueling an acceleration to the downside.

Traders are saying the move is likely overseas profit-taking and position-squaring ahead of Wednesday’s U.S. Federal Reserve policy decisions. The lack of concrete news over the progress of U.S.-China trade talks and the looming tariffs on December 15 could also be encouraging investors to shed risky positions.

At 09:59 GMT, December E-mini NASDAQ-100 Index futures are at 8328.50, down 27.50 or -0.33%.

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

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 8548.75 will change the main trend to up. A move through 8168.75 will signal a resumption of the downtrend after a four-day counter-trend rally.

The minor trend is also down. A trade through 8427.25 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is 8458.75 to 8168.25. Its 50% level or pivot at 8313.50 is support.

The main range is 7474.25 to 8458.75. If 8168.25 fails as support then look for an eventual break into its retracement zone at 7926.50 to 7819.75.

Daily Technical Forecast

Based on the early price action and the current price at 8328.50, the direction of the December E-mini NASDAQ-100 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at 8313.50.

Bullish Scenario

A sustained move over 8313.50 will indicate the presence of buyers. Overcoming and holding above a pair of Gann angles at 8328.25 and 8330.75 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the next downtrending Gann angle at 8394.75.

Overtaking 8394.75 could extent the rally into another downtrending Gann angle at 8426.75, a minor top at 8427.25 and another Gann angle at 8442.75. The latter is the last potential resistance angle before the 8458.75 main top.

Bearish Scenario

A sustained move under 8313.50 will signal the presence of sellers. This could trigger an acceleration into a pair of uptrending Gann angles at 8255.25 and 8248.25. Look for a technical bounce on the first test of these angles. If 8248.25 fails as support then look for the selling to possibly extend into the next major uptrending Gann angle at 8226.25.

The angle at 8226.25 is the trigger point for a steep break into 8168.25. If this main bottom at 8168.25 fails then look out below because the next major support doesn’t come in until 7926.50.

This article was originally posted on FX Empire