Technical Analysis of NASDAQ 100 E-mini Futures Hourly Chart
Indicators:
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RSI: 79.25
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EMA 20: 16244.75
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Trenlines, specifically showing rising wedge
Nasdaq technical analysis for the short term, 11 Dec 2023:
The NASDAQ 100 E-mini Futures hourly chart shows a rising wedge pattern, which is a bearish reversal pattern. The price is making higher highs and lower lows, but the RSI is not confirming the upward move. This divergence between the price and the RSI is a sign that the upward momentum is weakening.
The price is also above the EMA 20, but the EMA 20 is starting to slope down. This is another sign that the upward momentum is weakening.
Where can Nasdaq futures price go next?
Based on the technical analysis, I would say that the price of NASDAQ 100 E-mini Futures is likely to break down below the rising wedge pattern. The first potential support level is at 16200, which is the level of the EMA 20. If the price breaks below this level, the next potential support level is at 16100.
Why is this NQ technical analysis in the short/immediate term bearish?
The technical analysis shows that there is a bearish rising wedge pattern on the hourly chart. The RSI is also diverging from the price, which is another bearish signal. The EMA 20 is also starting to slope down, which is another sign that the upward momentum is weakening.
Additional Notes regarding any technical analysis on Nasdaq:
It is important to note that technical analysis is not a perfect science. There is always the possibility that the price will move in the opposite direction of what the technical analysis suggests. It is also important to consider other factors, such as fundamental analysis and news events, when making trading decisions. Check out www.ForexLive.com for more. Nasdaq hourly chart by Tradingview.com where you can get more Nasdaq technical analsis and ideas.
This article was written by Itai Levitan at www.forexlive.com. Source