Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Straddling Major Retracement Zone at 7696.25 to 7624.00
December E-mini NASDAQ-100 Index futures are trading lower as we approach the last hour of trading on Friday. The index is also in a position to close lower for the week. Technology stocks reversed earlier gains after reports that the White House is considering limits on U.S. investment into China.
At 20:04 GMT, December E-mini NASDAQ-100 Index futures are trading 7701.50, down 86.75 or -1.12%.
Shares of chipmaker Micron was a major drag on the index on Friday. They fell more than 11%, on track for its worst day since June 2015, after it reported first-quarter guidance that fell short of analyst expectations, dragging others in the semiconductor space lower in tandem.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The downtrend was reaffirmed on Friday when sellers took out the closing price reversal bottom at 7663.00. A trade through 7973.75 will change the main trend to up.
The minor trend is also down. A move 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. This zone provided support earlier in the week when the market hit a low at 7663.00. Today’s low at 7641.00 also fell inside this zone.
Daily Technical Forecast
Based on the early price action and the current price at 7701.50, the direction of the December E-mini NASDAQ-100 Index futures contract into the close on Friday is likely to be determined by trader reaction to the main 50% level at 7696.25.
Bullish Scenario
A sustained move over 7696.25 will indicate the presence of buyers. If this creates enough last session upside momentum then look for the rally to possibly extend into a pair of Gann angles at 7758.00 and 7781.50.
Bearish Scenario
A sustained move under 7696.25 will signal the presence of sellers. This could trigger a late session break into today’s intraday low at 7641.00, followed by the main Fibonacci level at 7624.00.
A failure to hold 7624.00 will put the index in an extremely weak position.
This article was originally posted on FX Empire
