Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Has to Close Over 9406.25 to Avoid Trouble
June E-mini NASDAQ-100 Index futures surged early in the session on Tuesday before backing off from their highs shortly after the mid-session. The rally was powered by optimism about a potential coronavirus vaccine and a rebirth in business activity that helped nervous investors shrug off festering U.S.-China tensions. The technology-based index was also charged by a jump in the benchmark S&P 500 Index over the psychological 3000 level.
At 18:19 GMT, June E-mini NASDAQ-100 Index futures are trading 9456.50, up 50.25 or +0.53%.
NASDAQ stock U.S. biotech group Novavax Inc. climbed 13.3% as it joined the race to test coronavirus vaccine candidates on humans and enrolled its first participants. Merck & Co. Inc. added 1.9% as it announced plans to develop two separate vaccines.
Despite the solid two month rally there are still skeptics. With macroeconomic data pointing at a deep recession, analysts warned the financial markets could be betting on too fast a recovery.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. It was confirmed earlier on Tuesday when buyers took out last week’s high. The trend will change to down on a move through 8847.00.
The minor trend is also up. A trade through 9241.50 changes the minor trend to down. This will also shift momentum to the downside.
The main range is 9780.50 to 6628.75. Its retracement zone at 8576.50 to 8204.50 is the longer-term support.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at 9456.50, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to Friday’s close at 9406.25.
Bullish Scenario
Holding above 9406.25 will indicate the presence of buyers. If this can create some upside momentum late in the day then look for a retest of the intraday high at 9604.00. Taking out this level will indicate the buying is getting stronger with the February 20 top at 9780.50 the next likely upside target.
Bearish Scenario
A sustained move under 9406.25 will signal the return of sellers. A close under this level will form a potentially bearish closing price reversal top. If confirmed then look for the start of a 2 to 3 correction. It won’t change the main trend but it will shift momentum to the downside and could lead to a 50% correction of the rally from 8847.00.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Has to Close Over 9406.25 to Avoid Trouble
Natural Gas Price Prediction – Prices Rebound but Remain Rangebound
USD/JPY Forex Technical Analysis – Rangebound: Strong Over 108.088, Weak Under 107.038
US Stock Market Overview – Stock Rally Led by Financials as Sentiment Continue to Rise
