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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Traders Facing Major Decision at 15255.00 – 15360.50

·3-min read

December E-mini NASDAQ-100 Index futures rose a little over 1% on Wednesday as investors showed little reaction to the latest directives from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon.

While trading was choppy following the Fed’s latest policy statement and comments by Federal Reserve Chairman Jerome Powell, the tech-heavy NASDAQ finished the session close to where it was before the central bank news.

On Wednesday, December E-mini NASDAQ-100 Index futures settled at 15178.25, up 154.25 or 1.03%.

Technology shares began the day higher as concerns eased over a default by China’s Evergrande. Evergrande’s main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond.

The top five biggest gainers were Booking Holdings Inc, which rose 3.46%, NXP Semiconductors NV was up 3.41% and jumped 3.29%. These were followed by NVIDIA Corp, which rose 3.27%, followed by Netflix Inc, which posted a 3.06% gain.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 14699 will change the main trend to down. A move through 15702.25 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. The minor trend will change to up on a trade through 15532.50. This will shift momentum back to the upside. A move through 14807.50 will indicate the selling pressure is getting stronger.

The main range is 13450.00 to 15702.25. Its retracement zone at 14576.00 to 14310.25 is still the primary downside target and value area.

The short-term range is 14437 to 15702.25. Traders are currently trying to build a support base at its retracement zone at 15069.50 to 14920.25.

The minor range is 15702.25 to 14807.50. Its retracement zone at 15255.00 to 15360.50 is the primary upside target. Trader reaction to this zone will determine the near-term direction of the index. Look for counter-trend traders on the first test of this area. They are going to try to form a potentially bearish secondary lower top.

Short-Term Outlook

The direction of the December E-mini NASDAQ-100 Index early Thursday is likely to be determined by trader reaction to 15073.00.

Bullish Scenario

A sustained move over 15073.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 15255.00 to 15360.50. Look for counter-trend sellers on the first test of this area.

Overtaking 15360.50 will indicate the buying is getting stronger. This could trigger a further rally into the minor top at 15532.50.

Bearish Scenario

A sustained move under 15072.75 will signal the presence of sellers. The first downside target is the 50% level at 15069.50. Look for buyers on the first test. If it fails, then look for the selling to possibly extend into the Fibonacci level at 14920.25.

If the selling is strong enough to take out 14920.25, then look for further downside pressure with this week’s low at 14807.50 the first target, followed by the main bottom at 14699.00.

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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