December E-mini NASDAQ-100 Index futures are trading sharply higher shortly before the close on Friday. The market has been supported all session by optimism over a potential trade deal between the United States and China after President Donald Trump said that the talks have been going “really well.”
Traders are now waiting to hear from President Trump and Chinese Vice Premier Liu He after their White House meeting which began around 17:45 GMT.
Traders are also responding positively to a report from Bloomberg News that said the two economic powerhouses struck a partial trade deal, adding this could set up a truce on the ongoing U.S.-China trade war. China would agree to some agricultural concessions while the U.S. would agree to some tariff relief.
At 19:16 GMT, December E-mini NASDAQ-100 Index futures are trading 7908.50, up 148.25 or +1.91%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 7799.75 changed the main trend to up earlier today. A move through 7583.25 will change the main trend to down.
The short-term range is 7973.75 to 7474.25. Its retracement zone at 7783.00 to 7724.00 is support. Holding above this zone is also helping to generate today’s strong upside bias.
The major support zone is 7624.50 to 7535.00. This zone provided support on Thursday at 7583.25.
Daily Technical Forecast
Based on the early price action and the current price at 7908.50, the direction of the December E-mini NASDAQ-100 Index futures contract into the close is likely to be determined by trader reaction to the downtrending Gann angle at 7918.50.
A sustained move over 7918.50 will indicate the presence of buyers. The next upside target is the downtrending Gann angle at 7960.50. This is the last potential resistance angle before the 7973.75 to 8002.50 main tops.
A sustained move under 7918.50 will indicate the buying is getting weaker or the selling is getting stronger.
The first downside target is a steep uptrending Gann angle at 7858.25. If this fails then look for the selling to extend into the downtrending Gann angle at 7834.50. This is a potential trigger point for an acceleration into the short-term Fibonacci level at 7783.00.
The Fib level at 7783.00 is another trigger point for an acceleration into the short-term 50% level at 7724.00, followed by the uptrending Gann angle at 7666.25.
This article was originally posted on FX Empire