Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – In Position to Post Potentially Bullish Closing Price Reversal Bottom
December E-mini NASDAQ-100 Index futures are trading higher at the mid-session after recovering all of its earlier losses. The early session weakness was fueled by renewed concerns over U.S.-China trade relations after President Trump said on Tuesday he would not accept a “bad deal” and uncertainty over the impeachment inquiry by the House Democrats on President Donald Trump.
At 16:45 GMT, December E-mini NASDAQ-100 Index futures are trading 7766.75, up 31.50 or +0.42%.
Triggering the rally was the release of the transcript of the phone call President Trump had with the Ukrainian president, which prompted the impeachment inquiry. The response by investors suggests investors did not find any serious problems with the phone call since the transcript does not appear to show an explicit quid pro quo by the president.
The market also rebounded after Trump told reporters at the United Nations in New York that a U.S.-China deal could come sooner “than you think.”
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, Wednesday’s strong performance has put the index in a position to form a potentially bullish closing price reversal bottom that could signal a shift in momentum to up.
A trade through 7663.00 will signal a resumption of the downtrend. A move through 7973.75 will change the main trend to up.
The minor trend is also down. A trade through 7904.75 will change the minor trend to up. This will also shift momentum to the upside.
The main range is 7390.00 to 8002.50. Its retracement zone at 7696.25 to 7624.00 stopped the selling at 7663.00 earlier in the session.
The new short-term range is 7973.75 to 7663.00. Its retracement zone at 7818.50 to 7855.00 is the primary upside target. Since the main trend is down, sellers may come in on a test of this area in an effort to form a secondary lower top.
Daily Technical Forecast
Based on the early price and the current price at 7766.75, the direction of the December E-mini NASDAQ-100 Index into the close on Wednesday is likely to be determined by trader reaction to a pair of Gann angles at 7726.00 and 7717.75.
Bullish Scenario
A sustained move over 7726.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential surge into the short-term 50% level at 7818.50, followed by a downtrending Gann angle at 7845.75.
Bearish Scenario
A sustained move under 7717.75 will signal the presence of sellers. The first target is the main 50% level at 7696.25. If this fails then look for the selling to possibly extend into today’s intraday low at 7663.00, followed by the main Fibonacci level at 7624.00.
Overview
A higher close produces a closing price reversal bottom. If confirmed, this could lead to a 2 to 3 day counter-trend rally.
This article was originally posted on FX Empire
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