Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 7572.00, Strengthens Over 7607.75
December E-mini NASDAQ-100 Index futures tried to breakout to the upside on Friday, but buyers were reluctant to enter on strength above the last swing top at 7627.00. This led to late session selling pressure and the formation of a closing price reversal top. This could be signaling the start of a 2-3 day correction.
On Friday, the index settled at 7550.50, down 58.25 or -0.77%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, the closing price reversal top may be signaling a shift in momentum to down.
A trade through 7637.50 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 7422.25.
The intermediate range is 7723.50 to 7422.25. Its retracement zone at 7572.00 to 7607.75 is resistance. It is also controlling the near-term direction of the index.
The short-term range is 7422.25 to 7637.50. Its retracement zone at 7529.75 to 7504.50 is the first downside target. Since the main trend is up, buyers may come in on the initial test of this zone. Look for the selling to extend if this zone fails as support.
The main range is 7193.50 to 7723.50. Its retracement zone at 7458.50 to 7396.00 is the major support zone. This zone provided support on September 7 at 7420.50 and on September 18 at 7422.25.
Daily Swing Chart Technical Forecast
Based on Friday’s price action and the close at 7550.50, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7572.00.
A sustained move under 7572.00 will indicate the presence of sellers. This could trigger a quick break into the short-term retracement zone at 7529.75 to 7504.50. Look for a technical bounce on the first test of this zone. If it fails then look for the selling to extend into 7458.50 to 7396.00.
A sustained move over 7572.00 will signal the presence of buyers. This could lead to a test of 7607.75, followed by 7637.50.
Taking out 7637.50 will indicate the buying is getting stronger. The daily chart indicates there is no resistance until 7723.50.
This article was originally posted on FX Empire
