E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 6932.50, Weakens Under 6822.75

December E-mini NASDAQ-100 Index futures closed higher on Friday. After drifting most of the session, buyers came in strong after positive comments about the trade talks hit the news. Going into the close, investors seemed optimistic that something positive would come out of this weekend’s crucial meeting between U.S. President Donald Trump and China’s President Xi Jinping.

On Friday, December E-mini NASDAQ-100 Index futures settled at 6949.50, up 36.25 or +0.52%.

Favorable results from the U.S.-China meeting this week-end at the G20 summit meeting in Argentina could launch a huge breakout to the upside, especially after Fed Chair Jerome Powell’s comments on Wednesday.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has shifted to the upside. A trade through 7231.00 will change the main trend to up. A move through 6449.50 will signal a resumption of the downtrend.

The minor trend is up. It turned up on Friday on a move through 6934.50. This move also shifted momentum to the upside.

The market also closed on the strong side of a key retracement zone at 6822.75 to 6607.00. This is helping to give the index an upside bias. This zone is new support.

It is currently testing a short-term Fibonacci level at 6932.50. This is a potential trigger point for an acceleration to the upside with another retracement zone at 7154.75 to 7290.25 the next target.

Daily Swing Chart Technical Forecast

Based on Friday’s price action and the close at 6949.50, the direction of the December E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to the Fibonacci level at 6932.50.

Bullish Scenario

A sustained move over 6932.50 will indicate the presence of buyers. The daily chart indicates there is plenty of room to the upside with the next target zone 7154.75 to 7290.25. Inside this zone is the main top at 7231.00.

Overcoming 7231.00 will change the main trend to up, however, overtaking 7290.25 could trigger the start of a major breakout to the upside.

Bearish Scenario

A sustained move under 6932.50 will signal the presence of sellers. This could lead to a quick break into 6822.75. The daily chart starts to open up to the downside under this level with the next target 6609.00. This is the last potential support before the main bottom at 6449.50 and another main bottom at 6385.25.

Basically, we’re looking for the upside bias to continue on a sustained move over 6932.50. A downside bias is likely to develop on a sustained move under 6922.75.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.