E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Counter-Trend Sellers Eyeing 15554.00 – 15589.00

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December E-mini NASDAQ-100 Index futures are edging higher in the pre-market session on Monday, rebounding from an earlier setback as investors attempt to break a three-day losing streak.

At 08:19 GMT, December E-mini NASDAQ-100 Index futures are trading 15502.25, up 68.25 or +0.44%.

The technology index was pressured early in the session due to heavy losses seen in Asia trading on Monday, where Hong Kong’s Hang Seng Index dropped about 2% amid regulatory fears surrounding sectors such as financial technology and electric vehicles.

A sharp rise in producer prices helped drive the index lower on Friday. The news has traders bracing for Tuesday’s consumer price index report which will show Wall Street how the rise in producer costs are being passed on to consumers.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. The main trend will change to down on a trade through 14699.00. A move through 15702.25 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. The next downside target is the minor bottom at 15248.50.

The minor range is 15702.25 to 15405.75. Its retracement zone at 15554.00 to 15589.00 is the next upside target. Aggressive counter-trend sellers could come in on a test of this level. They are going to try to form a potentially bearish secondary lower top.

The short-term range is 14699.00 to 15702.25. If the selling pressure resumes on a trade through the intraday low at 15405.75 then its retracement zone at 15200.50 to 15082.25 will become the primarily downside target.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to 15434.00.

Bullish Scenario

A sustained move over 15434.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 15554.00 to 15589.00. Look for sellers on the first test of this area. Overtaking the Fibonacci level at 15589.00 could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 15434.00 will signal the presence of sellers. The first downside target is the intraday low at 15405.75. This is a potential trigger point for an acceleration to the downside with the short-term retracement zone at 15200.50 to 15082.25 the next major downside target and value zone.

Look for buyers on the first test of 15200.50 to 15082.25.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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