E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 12, 2018 Forecast

June E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. Investors are responding to an easing of tensions over Syria.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Yesterday, the index formed a minor closing price reversal top, however, since there was no follow-through to the downside, there was no loss in the upside momentum generated by last week’s closing price reversal bottom.

A trade through 6663.25 will negate the minor reversal top and indicate the buying is getting stronger. The actual main trend will change to up on a trade through 6849.25.

A move through 6306.75 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 6192.50 to 7214.50. The market is currently testing its retracement zone at 6703.50 to 6583.00. This zone is controlling the longer-term direction of the index.

The intermediate range is 7214.50 to 6306.75. Its retracement zone at 6760.75 to 6867.75 is the next upside target.

The short-term range is 6306.75 to 6663.25. Its retracement zone at 6485.00 to 6443.00 is the primary downside target. Aggressive counter-trend buyers are likely to come in on a test of this zone. If they fail to show up then look for the selling to extend into the main bottom at 6306.75.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index is likely to be determined by trader reaction to the major Fibonacci level at 6583.00.

A sustained move over 6583.00 will indicate the presence of buyers. This should trigger a labored rally into 6642.00, 6663.25, 6703.50 and 6760.75.

The 50% level at 6760.75 is the first trigger point for an acceleration into 6849.25 to 2867.75.

A sustained move under 6583.00 will signal the presence of sellers. This is the trigger point for an acceleration the short-term retracement zone at 6485.00 to 6443.00.

IF buyers don’t come in on a test of the retracement zone, then prices could collapse under 6443.00 with 6306.75 the next likely target.