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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – In Position to Challenge All-Time High at 9780.50

James Hyerczyk

June E-mini NASDAQ-100 Index futures posted modest gains on Tuesday as market participants looked past widespread social unrest and pandemic worries to focus instead on lifting lockdown restrictions and signs of economic recovery. Technology shares continued to boost the NASDAQ, while cyclical stocks like financials and industrials gave the biggest lift to the S&P 500 and the Dow.

On Tuesday, June E-mini NASDAQ-100 Index futures settled at 9647.75, up 52.75 or +0.55%.

The index is now in a position to challenge its all-time high reached in February. However, some investors saw the rally as an excuse to book profits ahead of Friday’s U.S. Non-Farm Payrolls report. Technology-focused companies, including, Facebook, Inc. and Apple, Inc. which have led the market recovery, were marginally lower on Tuesday.

In other news, the NASDAQ Composite recorded 63 new highs and four new lows. Additionally, advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NASDAQ.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through Tuesday’s high at 9670.00 will reaffirm the uptrend.

The main trend is safe at this time, however, due to the prolonged move up in terms of price and time, the index will begin Wednesday’s session inside the window of time for a potentially bearish closing price reversal top. The chart pattern may not lead to a change in trend, but it will indicate the selling is greater than the buying at current price levels. The trend will actually change to down on a move through 8847.00.

The minor trend is also up. A trade through 9172.50 will change the minor trend to down. This will also shift momentum to the downside.

Daily Swing Chart Technical Forecast

Our preliminary analysis indicates the tone of the market on Wednesday is likely to be determined by trader reaction to 9647.75.

A sustained move over 9647.75 could generate the upside momentum needed to challenge the February 20 top at 9780.50.

A sustained move under 9647.75 will signal the presence of sellers. This could form a closing price reversal top.

This article was originally posted on FX Empire