E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Approaching Retracement Zone at 7255.25 to 7187.00

June E-mini NASDAQ-100 Index futures finished lower on Wednesday after the benchmark 10-year Treasury yield fell to its lowest level in more than a year as worries over a possible economic slowdown continued to exert pressure. The technology index was underpinned by a rise in shares of Apple, but these gains were outweighed by losses in Facebook, Amazon, Netflix and Alphabet.

At 20:42 GMT, June E-mini NASDAQ-100 Index futures are trading 7329.25, down 47.50 or -0.64%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of a closing price reversal top at 7544.75 on March 22.

A trade through 7544.75 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 6965.75.

The short-term range is 6965.75 to 7544.75. Its retracement zone at 7255.25 to 7187.00 is the first downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.

The contract range is 7767.00 to 5847.25. Its retracement zone at 7033.75 to 6807.00 is the next major downside target.

The main range is 5847.25 to 7544.75. This is the December 2018 to March 2019 rally. Its retracement zone at 6696.00 to 6495.75 is another potential downside target.

Daily Swing Chart Technical Forecast

If the downside momentum continues on Thursday then look for a break into 7255.25 to 7187.00. Since the trend is up, buyers could come in on a test of this zone in an effort to defend the uptrend. They are also going to try to form a secondary higher bottom. If successful, this could lead to a test of the recent top at 7544.75.

If 7187.00 fails as support then look for the selling pressure to extend into the contract’s Fibonacci level at 7033.75.