E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 20, 2018 Forecast

June E-mini NASDAQ-100 Index futures are expected to open flat based on the pre-market trade. Traders are concerned about valuations and rising U.S. interest rates. This is generating some profit-taking.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Wednesday when buyers took out the last main top at 6849.25. The index is not in a position to change to down, but momentum may be shifting to the downside with the formation of a new main top at 6867.00.

A trade through 6867.00 will signal a resumption of the uptrend. The daily chart is wide open over this level with the next swing top coming in at 7214.50.

The main range is 7214.50 to 6306.75. Its retracement zone at 6760.75 to 6867.75 is acting like resistance. This zone stopped the rally on Wednesday and Thursday.

A major retracement zone comes is at 6703.50 to 6583.00. This zone is a possible downside target and support zone.

Intermediate support comes in at 6642.00 to 6578.00.

The short-term range is 6306.75 to 6867.00. Its retracement zone at 6586.75 to 6520.75 is the primary downside target.

Since the main trend is up, buyers can come in at any time on a test of a retracement level with 6586.75 to 6520.75 the value zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 6760.50.

A sustained move over 6760.50 will indicate the presence of buyers. If this move attracts enough buyers, we could see a rally back to 6867.00 to 6867.75. The latter is the trigger point for an acceleration to the upside.

A sustained move under 6760.50 will signal the presence of sellers. This could trigger a labored break with potential support layered at 6703.50, 6642.00, 6586.75, 6583.00, 6578.00 and 6520.75.

As the index breaks each support level, it becomes resistance. Remember that the primary downside target and the best support area is 6586.75 to 6520.75.