E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 21, 2017 Forecast

September E-mini NASDAQ-100 Index futures are called higher based on the pre-market traders. The price action suggests investors are coming in to defend a main bottom and a major retracement zone.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 5761.00 will change the main trend to down. Due to the prolonged move down in terms of price and time, we’re also in the window of time for a possible closing price reversal bottom. This suggests there may not be much of a follow-through to the downside when the trend changes to down.

The major support is a retracement zone at 5778.00 to 5726.50. This zone stopped the selling on August 11 when the index reached its bottom at 5761.00.

The short-term range is 5995.75 to 5761.00. If there is a rally or a change in momentum, its retracement zone at 5878.50 to 5906.00 will become the primary upside target.

Forecast

Based on the current price at 5798.00 and the earlier price action, the support is 5785.00, 5778.00, 5773.00 and 5761.00. Because of the layout, we could see a labored break. However, look for an acceleration to the downside into 5726.50 if 5761.00 fails as support.

A sustained move over the uptrending angle at 5809.00 will signal the presence of buyers. This could generate enough upside momentum to challenge the next uptrending angle at 5857.00. Overtaking this angle will put the index in a position to test the retracement zone at 5878.50 to 5906.00.