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

September E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. Volume and volatility are on the light side.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7505.50 will change the main trend to up. A move through 7316.50 will signal a resumption of the downtrend.

The minor trend is also down, which means momentum is trending lower.

The short-term range is 7505.50 to 7316.50. Its retracement zone at 7411.00 to 7433.25 is currently being tested. This zone is controlling the direction of the index.

The main range is 7166.75 to 7505.50. Its retracement zone at 7336.00 to 7296.00 is the primary downside target. This zone stopped the selling at 7316.50 and 7321.75 last week.

Additional support is a 50% level at 7348.25. The best support cluster is 7348.25 to 7336.00.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to a pair of Gann angles at 7406.75 and 7393.50.

A sustained move over 7406.75 will indicate the presence of buyers. This could lead to a quick rally into 7411.00. Overcoming this level could spike the market into 7433.25, followed by a downtrending Gann angle at 7449.00.

The angle at 7449.00 is the trigger point for an acceleration to the upside with the next target angle coming in at 7477.50. This is the last potential resistance angle before the 7505.50 main top.

A sustained move under 7393.50 will signal the presence of sellers. The daily chart is wide open under this angle with the next target the support cluster at 7348.25 to 7336.00. Watch for a technical bounce on the first test of this area.

If 7336.00 fails then look for the selling to extend into 7331.75, 7316.50 and 7296.00.