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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Close Ahead of Microsoft Earnings

James Hyerczyk
·2-min read

March E-mini NASDAQ-100 Index futures surged early Monday, survived an intraday sell-off then rebounded to close within striking distance of its record high reached earlier in the session.

The volatile price action came as investors geared up for a busy week of earnings from mega-cap technology firms. The so called “stay at home” winners including Microsoft Corp, Facebook Inc and Apple Inc rose between 1.5% and 2.9% in premarket trading, as investors were optimistic of their earnings reports following upbeat results from Netflix Inc last week.

On the close, March E-mini NASDAQ-100 Index futures were trading 13464.25, up 102.75 or +0.77%.

Microsoft, scheduled to report results on Tuesday, rose 1.5% as Wedbush raised its price target on the software maker’s stock on expectations of further growth in its cloud business for 2021.

Daily March E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 13554.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 12727.00.

The minor range is 12727.00 to 13554.50. Its 50% level at 13140.75 is the first support. This is followed by additional 50% levels at 13022.75 and 12885.75.

Short-Term Outlook

Given the major earnings reports this week, concerns over coronavirus and worries about President Biden’s stimulus package, we expect to continue to see volatility over the short-run. The main trend is safe, however, unless 12727.00 is taken out with conviction.

We’ve seen some choppy trading recently with swing bottoms taken out. However, the lack of follow-through to the downside after these moves has failed to bring in the short-sellers.

The three 50% levels at 13140.75, 13022.75 and 12885.75 could attract buyers if tested. Traders are also likely to use these levels to defend the main bottom at 12727.00.

This article was originally posted on FX Empire

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