E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 26, 2018 Forecast

June E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. The tech-based rally is being driven by strong quarterly results from Facebook and Advanced Micro Devices. The index was underpinned earlier in the session by a drop in the 10-year Treasury yield below the psychological 3-percent level.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Today’s price action suggests the market may have absorbed the five-day setback that drove the index through a short-term retracement zone on Wednesday.

Yesterday’s closing price reversal bottom at 6429.25 and today’s subsequent confirmation of the chart pattern suggests the buying may be greater than the selling at current price levels.

The intermediate range is 6306.75 to 6867.00. Its retracement zone at 6586.75 to 6420.75 is support.

The new short-term range is 6867.00 to 6429.25. Its retracement zone at 6648.25 to 6699.75 is the primary upside target.

The main range is 7214.50 to 6306.75. Its retracement zone at 6760.75 to 6867.75 is another upside target. This zone is controlling the longer-term direction of the index.

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 intermediate 50% level at 6586.75.

A sustained move over 6586.75 will indicate the presence of buyers. This could create the upside momentum needed to challenge the short-term retracement zone at 6648.25 to 6699.75. The latter is a potential trigger point for an acceleration into 6760.75 to 6867.75.

A sustained move under 6586.75 will signal the presence of sellers. This could trigger a move into the Fib level at 6520.75. If this price fails then look for an acceleration into yesterday’s low at 6429.75.

A trade through 6429.25 will negate the closing price reversal bottom and signal a shift in momentum to the downside with 6306.75 the next likely downside target.