E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Supported by U.S.-listed Chinese Tech Companies

June E-mini NASDAQ-100 Index futures are rebounding in the premarket session, on the back of strong gains in U.S.-listed shares of Chinese technology companies. The rally is being fueled by optimism around easing regulatory crackdowns and relaxing COVID-19 curbs in the world’s second-largest economy.

At 12:33 GMT, June E-mini NASDAQ-100 Index futures are trading 12734.25, up 183.25 or +1.46%. On Friday the Invesco QQQ Trust ETF (QQQ) settled at $306.11, down $8.27 or -2.63%.

Today’s Market Drivers

Sentiment is also being supported after U.S. Secretary Gina Raimondo said on Sunday that President Joe Biden has asked his team to look at the option of lifting some tariffs on China that were put into place by former President Donald Trump, to combat the current high inflation.

The U.S.-listed shares of Chinese technology companies providing the most support are shares of Didi Global, up 48.6%. Full Truck Alliance and Kanzhun Ltd climbed 22.9% and 20.6%, respectively. Shares of JD.com Inc, Baidu and Alibaba Group, targets of China’s crackdown on its internet sector, advanced between 5.6% and 6.2%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 12945.25 will signal a resumption of the uptrend. A move through 12442.50 will change the main trend to down.

On the downside, support is a pair of pivots at 12523.25 and 12218.25.

On the upside, the first resistance is a retracement zone at 12894.75 to 13226.00. This zone stopped the buying at 12945.25 on Friday. The second resistance is a retracement zone at 13380.00 to 13825.75.

The combination of the two retracement zones creates a resistance cluster at 13226.00 to 13380.00.

Daily Swing Chart Technical Forecast

Trader reaction to 12523.25 is likely to determine the direction of the June E-mini NASDAQ-100 on Monday.

Bullish Scenario

A sustained move over 12523.25 will indicate the presence of buyers. The first upside targets are a 50% level at 12894.75 and a minor top at 12945.25. The latter is a potential trigger point for an acceleration into the resistance cluster at 13226.00 to 13380.00. This is the last potential resistance before the 13555.25 main top.

Bearish Scenario

A sustained move under 12523.25 will signal the presence of sellers. This could lead to a test of the main bottom at 12442.50.

Taking out 12442.50 will change the main trend to down with 12218.25 the next target. This is a potential trigger point for an acceleration to the downside with the long-term 50% level at 11671.25 the next key target.