Last week, the Nasdaq 100 futures (CME: NQ) encountered a downturn in the later sessions, sparked by Intel’s sombre revenue forecast, causing its stock price to plummet nearly 12%. This hit to Intel’s fortunes had a ripple effect on market sentiment. Despite this setback, the Nasdaq 100 futures managed to secure their third consecutive weekly gain, marking an impressive tally of 12 weekly gains out of the past 13.
Looking ahead, the upcoming week holds the promise of significant developments. The market’s attention is keenly focused on the earnings reports from tech giants Microsoft, Apple, Amazon, and Meta, which could play a pivotal role in shaping the futures. Additionally, the Federal Reserve’s interest rate decision and the Non-Farm Payroll report are on the horizon, promising a bustling week ahead with potential market-moving events. As we progress, these crucial releases are poised to add excitement and anticipation to the trajectory of Nasdaq 100 futures.
Technical
On the 4H chart, the recent uptrend has entered a consolidatory phase in the form of a descending triangle. The 25-SMA (green line) offers resistance at the higher end, preventing a breakout near 17,583.00. As long as this resistance holds, a breakdown at the triangle support of 17,436.50 is possible.
If the breakdown occurs, the 50-SMA (blue line) could be the first level of interest near 17,376.92. Movement below this level could confirm the breakdown, bringing the Fibonacci midpoint at 17243.50 into play. A retracement could be initiated at this level if the support holds. Still, if the futures move any lower, the price action could look toward the 61.8% Fibonacci golden ratio for buyers at 17,113.00.
Conversely, if support at 17,436.50 holds the sellers intact, the futures can continue testing resistance at 17,583.00. A breakout above this level could see the futures continuing the prior uptrend, making resistance at 17,726.50 and 17,794.00, important levels to keep an eye on.
Summary
The Nasdaq 100 futures are consolidating atop an impressive uptrend. However, the formation of a descending triangle formation holds the potential for a bearish reversal if the resistance at 17,583.00 continues to withstand the bullish momentum.
Sources: Koyfin, Tradingview, Reuters
Piece written by Tiaan van Aswegen, Trive Financial Market Analyst
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