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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 16, 2017 Forecast

By:
James Hyerczyk
Published: Aug 16, 2017, 13:15 UTC

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. Fears of an attack by North Korea seem to be abating

E-mini NASDAQ-100 Index

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. Fears of an attack by North Korea seem to be abating which is giving the bulls some breathing room. Later today, investors will get the opportunity to react to the latest FOMC monetary policy minutes. This could drive the market higher if the minutes show the Fed believes the economy is strong enough to handle a rate hike later this year.

E-mini NASDAQ-100 Index
Daily September E-mini NASDAQ-100 Index

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 5995.75 will signal a resumption of the uptrend. A trade through 5761.00 will change the main trend to down.

The short-term retracement zone at 5906.00 to 5878.25 is controlling the near-term direction of the index. Holding above this zone today is helping to give the index an upside bias.

The major support area is 5778.00 to 5726.50.

Forecast

Based on the current price at 5923.00 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the Fibonacci level at 5906.00.

A sustained move over 5906.00 will indicate the presence of buyers. Taking out the downtrending angle at 5939.75 will indicate the buying is getting stronger.

Crossing to the strong side of the steep uptrending angle at 5953.00 will put the index in a bullish position. This could lead to a test of a pair of downtrending angles at 5967.75 and 5981.75. The latter is the last potential resistance angle before the 5995.75 main top.

If 5906.00 fails as support, we could see a fast sell-off into the 50% level at 5878.25, followed closely by an uptrending angle at 5857.00. The daily chart is wide open under this angle with the next target 5809.00.

Basically, we’re looking for strength over 5939.75 and weakness under 5906.00.

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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