December E-mini NASDAQ-100 Index futures are trading higher shortly after the opening on Wednesday. Traders are attributing the recovery to a rebound in crude oil prices and optimism over US-China trade negotiations.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 6580.50 will reaffirm the downtrend. A move through 7231.00 will change the main trend to up.
The price action is also being dictated by a number of retracement levels. Most of the retracement levels are too the upside, meaning we can expected a labored rally. The way of least resistance is down, which means more volatility and wider trading ranges.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the main 50% level at 6822.75.
A sustained move over 6822.75 will indicate the presence of buyers. If this generates enough upside momentum then look for a test of the short-term 50% level at 6974.50. Overtaking this level will indicate the buying is getting stronger with the next targets coming in at 7067.50 and 7154.75.
A sustained move under 6822.75 will tell a different story. This is a potential trigger point for the start of a steep break. Daily chart targets include a major Fibonacci level at 6609.00 and the main bottom at 6580.50.
This article was originally posted on FX Empire
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