E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 20, 2019 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly higher on Tuesday after the previous session’s robust gains. Some of that move was fueled by firmer U.S. Treasury yields, which seemed to indicate an easing of tensions over a recession after the bond market flashed a popular recession signal last week.

President Trump said on Sunday that: “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.” Well what else is he supposed to say? However, his opponents may not feel that way especially heading into an election year.

Technology was in the news on Monday. U.S. Commerce Secretary Wilbur Ross announced that it was extending by another 90 days a temporary reprieve for Huawei, the Chinese communication giant, to do business with American firms. The U.S. added another 46 Huawei affiliates onto the blacklist.

At 09:53 GMT, September E-mini NASDAQ-100 Index futures are trading 7735.50, up 8.00 or +0.10%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher, supported by a pair of closing price reversal bottoms at 7388.25 and 7224.50.

The main trend will change to up on a trade through 7789.50. A move through 7388.25 will signal a resumption of the downtrend.

The short-term range is 8051.75 to 7224.50. Its retracement zone at 7638.00 to 7735.75 is currently being tested. Crossing to the strong side of this zone will put the index in a bullish position to continue to the rally.

The main retracement zone support comes in at 7510.25 to 7382.50.

Daily Technical Forecast

Based on the early price action and the current price at 7735.50, the direction of the September E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 7735.75 and the downtrending Gann angle at 7747.75.

Bullish Scenario

A sustained move over 7747.75 will indicate the presence of buyers. Crossing to the strong side of the steep uptrending Gann angle at 7772.25 will put the index in a position to challenge the main top at 7789.50.

Taking out 7789.50 will change the main trend to up. This could trigger a surge to the upside with target angles coming in at 7849.50 and 7899.75.

Bearish Scenario

A sustained move under 7735.75 will signal the selling is getting stronger or the buying is getting weaker. The daily chart indicates there is room for a break into the short-term 50% level at 7638.00, followed by the uptrending Gann angle at 7580.25.

Overview

Essentially, the index has reached the point on the chart where it either breaks out above 7789.50 or pulls back to at least 7638.00.