E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 13281.50, Weakens Under 13195.75

The March E-mini NASDAQ-100 futures contract is trading slightly lower during the pre-market session on Tuesday after an attempt to follow-through to the upside early in the session failed to attract any sizable buying.

The tech-weighted index began the month on Monday with a price jump of more than 3% after losing 4.9% last week. Investors said a pause in the rise of Treasury yields allowed high-growth tech names to recoup a sizable portion of their recent losses.

At 11:47 GMT, March E-mini NASDAQ-100 Index futures are trading 13233.25, down 46.50 or -0.35%.

On Tuesday, traders are expected to get their cues from the Treasury market, which has become the focal point since last week’s meltdown in bond prices. Yields are currently trading below last week’s high of about 1.6%, helping to stabilize the NASDAQ-100. Some investors anticipate another steep sell-off if yields rise above last week’s high.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside when Friday’s closing price reversal top was confirmed during yesterday’s session.

A trade through 12662.25 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through 13900.50.

The minor trend is down. A trade through 13353.75 will change the minor trend to up. This will confirm the shift in momentum.

On the downside, support is a 50% level at 13195.75 and a 61.8% level at 13029.50.

The short-term range is 13900.50 to 12662.25. Its retracement zone at 13281.50 to 13427.50 is resistance. This zone stopped the rally on Monday and earlier today. Trader reaction to this area will determine the short-term direction of the index.

Since the main trend is down, sellers are going to come in at 13281.50 to 13427.50. Aggressive counter-trend buyers are going to try to trigger a breakout over this zone.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index is likely to be determined by trader reaction to a pair of 50% levels at 13281.50 and 13195.75.

Bullish Scenario

A sustained move over 13281.50 will indicate the presence of buyers. This could trigger a surge into 13353.75, followed by 13427.50. The latter is a potential trigger point for an acceleration to the upside with 13729.00 the next potential upside target.

Bearish Scenario

A sustained move under 13195.75 will signal the presence of sellers. This could trigger an acceleration to the downside with 13029.50 the first target. This is a potential trigger point for an acceleration to the downside.

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