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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Key Resistance Zone is 11955.75 to 11975.75

James Hyerczyk
·3 minuto per la lettura

December E-mini NASDAQ-100 Index futures are edging higher during the pre-market session on Friday as Wall Street continues to grapple with the rising number of coronavirus cases and its potential impact on the already fragile economic recovery.

Today’s early move is coming off another lower close on Thursday that was fueled as the number of coronavirus cases, and hospitalizations, keeps climbing in the United States. A CNBC analysis of data compiled by Johns Hopkins University showed average daily news cases are up by at least 5% over the past week in at least 47 states. Hospitalizations, meanwhile, rising in at least 46 states.

At 07:01 GMT, December E-mini NASDAQ-100 Index futures are trading 11880.00, up 60.00 or +0.51%.

In other news, sentiment soured on Thursday even further after Federal Reserve Chairman Jerome Powell said the country’s economic outlook remained uncertain. “With the virus spreading, the next few months could be challenging,” he said.

Shares of Cisco rose sharply in after-hours trading after reporting quarterly results that beat analyst expectations. Cisco popped more than 6% on the back of strong earnings and revenue. The company also issued better-than-expected guidance for the current quarter.

Daily December E-mini NASDAQ-100 Index
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. A trade through 12408.75 will reaffirm the uptrend. The main trend will change to down on a move through 10942.25.

The minor trend is also up. A trade through 11503.25 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 12408.75 to 11503.25. Its 50% level at 11955.75 is resistance. This could also be the trigger point for an acceleration to the upside.

The second minor range is 11503.25 to 11975.75. Its 50% level at 11739.50 is potential support.

The short-term range is 10942.25 to 12408.75. Its retracement zone at 11675.50 to 11502.50 is support. This zone stopped the selling at 11503.25 on Tuesday.

Daily Swing Chart Technical Forecast

The price action this week suggests the direction of the December E-mini NASDAQ-100 Index will be determined by trader reaction to a pair of 50% levels at 11739.50 and 11955.75.

Bullish Scenario

A sustained move over 11955.75 will indicate the presence of buyers. Taking out 11975.75 could trigger an acceleration to the upside with the only targets 12408.75 and 12444.75.

Bearish Scenario

The failure to overcome 11955.75 will indicate the presence of sellers, while taking out 11739.50 will signal the selling pressure is getting stronger. This could lead to a quick test of 11675.50. This is a potential trigger point for an acceleration to the downside with the next target a support cluster at 11503.25 to 11502.50.

If 11502.50 is taken out with enough selling volume then look for an even bigger acceleration to the downside.

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

This article was originally posted on FX Empire