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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 25, 2016 Forecast

By:
James Hyerczyk
Updated: Oct 25, 2016, 13:18 UTC

December E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. There is very little on the economic front from the

e-mini-nasdaq-100-index

December E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. There is very little on the economic front from the U.S. so the main focus will be on corporate earnings. Although there is a slew of corporate earnings reports, the biggest is Apple. However, the report will be released after the close.

Technical Analysis

The main trend is up according to the daily swing chart. The trend changed to up on Monday on a trade through 4901.50. The main bottom is 4754.50. A trade through this price will turn the main trend to down.

Today is the eighth day up from the main bottom so the session will begin with the NASDAQ-100 in the window of time for a closing price reversal top. This chart pattern will signal that the selling is greater than the buying at current price levels.

daily-december-e-mini-nasdaq-100-index
Daily December E-mini NASDAQ-100 Index

Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the uptrending angle at 4912.50.

A sustained move over this price will indicate the presence of buyers. This is followed by another uptrending angle at 4923.50. Overcoming this angle could trigger an acceleration to the upside with the main target angle coming in at 4945.50.

A sustained move under 4912.50 will indicate the presence of sellers. This could generate enough downside momentum to challenge the old top at 4901.50. Crossing to the weak side of this price will indicate the selling is getting stronger with an uptrending angle at 4882.50 the next likely target.

Watch the price action and read the order flow at 4912.50 today. Trader reaction to this angle will tell us if the buying pressure is beginning to weaken.

A close under 4902.75 will form a potentially bearish closing price reversal top. This could lead to the start of a 2 to 3 day correction.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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