E-mini NASDAQ-100 (NQ) Index Futures Technical Analysis – weakens below 16332.00, strengthens above 16434.75


December’s E-mini NASDAQ-100 index futures ended higher on Wednesday, supported by the gain of Nvidia and other tech stocks.

Nvidia was up 2.9% after rebounding from a massive selloff in Big Tech shares earlier in the week. The graphics chip maker is now up around 150% in 2021.

Despite the rally, so far this week the NASDAQ Composite is down around 1.3% as investors fear higher interest rates hurt valuations of tech stocks and other growth stocks .

On Wednesday, December, futures on the E-mini NASDAQ-100 index stood at 16,366.00, up 54.00 or + 0.33%.

In stock-related news, Tesla Inc was up 0.6%. In his last share sale, CEO Elon Musk sold 934,091 shares of the electric vehicle maker worth $ 1.05 billion after exercising options to buy 2.15 million shares.

PC makers HP Inc and Dell Technologies jumped 10% and 4.8%, respectively, after posting more than a four-fold increase in quarterly profits amid growing demand for personal computers.

December E-mini NASDAQ-100 Daily Index

Technical analysis of the daily swing chart

The main trend is up according to the daily swing chart, however, momentum has been down since the confirmation of the closing price reversal top on November 22.

A trade up to 16,767.50 will cancel the reversal top of the closing price and signal a resumption of the uptrend. A move through 15896.50 will change the main trend down.

The minor range is 16767.50 to 16102.00. Its 50% or pivot level is resistance.

The short-term range is 15,896.50 to 16,767.50. On Wednesday, the index closed on the strong side of its pivot at 16,332.00, making it a potential support.

Intermediate levels of 50% at 16020.50 and 15676.50 are potential support.

The main range is 14,367.75 to 16,767.50. Its 15567.50 to 15284.50 retracement area is an area of ​​potential value, so look for new buyers when you first test this area.

Technical forecasts of the daily swing chart

The direction of the E-mini NASDAQ-100 index for December early Friday will likely be determined by the reaction of traders at 16332.00.

Bullish scenario

A sustained move above 16332.00 will indicate the presence of buyers. The first target is 16,434.75. This pivot is a potential trigger point for an upward acceleration with 16767.50 the next major target.

Bearish scenario

A sustained move below 16332.00 will signal the presence of sellers. This could trigger a strong breakout in 16102, followed closely by 16020.50. This is the last support before the main low of 15,896.50.

Withdrawing 15896.50 will change the main trend down. This could trigger a breakout in a pair of 50% levels at 15676.50 and 15567.50.

The best support area and value area is 15567.50 to 15284.50.


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