March E-mini NASDAQ-100 Index futures closed lower on Friday as investors continued to shed positions ahead of the long holiday week-end. With the major players on the sidelines this week ahead of the New Year’s holiday, we could continue to see the drifting price action that we saw most of last week.
Daily Swing Chart Analysis
The main trend is up according to the daily swing chart, however, momentum has been drifting lower since the formation of the closing price reversal top on December 19. A trade through 6463.25 will indicate the selling is getting stronger. A move through 6545.75 will negate the chart pattern and signal a resumption of the uptrend.
The short-term range is 6545.75 to 6463.25. Its retracement zone at 6504.50 to 6514.25 is acting like resistance.
The main range is 6250.00 to 6545.75. If the sell-off extends beyond 6463.25, we could see an eventual move into the major retracement zone at 6397.75 to 6363.00.
Daily Swing Chart Forecast
Based on Friday’s close at 6483.75 and last week’s price action, the direction of the E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the short-term retracement zone at 6504.50 to 6514.25.
A sustained move over 6514.25 will signal the presence of sellers. This could drive the index into last week’s low at 6463.25. Taking out this level with increasing selling pressure could trigger an acceleration to the downside with 6397.75 the next near-term target.
Overcoming 6504.50 will indicate the buying is getting stronger. A sustained move over 6514.25 could trigger an acceleration into the main top at 6545.75.
This article was originally posted on FX Empire