E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 6822.75 Key Level to Watch into Close
December E-mini NASDAQ-100 Index futures are trading higher as we approach the end of another session on Tuesday. Technology shares are bouncing back, led by a recovery in shares of Apple which triggered the steep decline on Monday. Driving the market higher earlier in the session were also positive comments from White House economic advisor Larry Kudlow who confirmed reports of renewed talks between the U.S. and China on trade.
At 1927 GMT, December E-mini NASDAQ-100 Index futures are trading 6842.50, up 7.50 or +0.11%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The next main bottom comes in at 6580.50. A trade through 7231.00 will change the main trend to up.
The price action is being controlled by a series of retracement levels.
The major range is 5616.75 to 7728.75. Its retracement zone at 6822.75 to 6609.00 is support. This zone stopped the selling at 6580.50 on October 29. Today’s intraday low stopped at 6801.25, just inside the 50% level at 6822.75.
The intermediate range is 7368.50 to 6580.50. Its retracement zone at 6974.50 to 7067.50 is resistance
The main range is 7728.75 to 6580.50. Its retracement zone at 7154.75 to 7290.25 is another resistance area.
Daily Swing Chart Technical Forecast
Based on the early trade and the current price at 6842.50, the direction of the December E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the major 50% level at 6822.75.
A sustained move over 6822.75 will indicate the presence of buyers. If this move can create enough upside momentum then look for a drive into 6974.50. This is a potential trigger point for an acceleration to the upside with the next target 7067.50, followed by 7154.75.
A sustained move under 6822.75 will signal the presence of sellers. The daily chart is wide open under this level with potential downside targets coming in at 6609.00 then 6580.50.
If the volume remains light into the close then look for a sideways trade between a pair of 50% levels at 6822.75 and 6974.50.
This article was originally posted on FX Empire
