E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 21, 2019 Forecast

September E-mini NASDAQ-100 Index futures are trading higher during the pre-market session. The market is recovering after yesterday’s first loss in four sessions. There is no particular overnight event driving the price action, however, traders may be positioning themselves in anticipation of dovish Federal Reserve minutes, due to be released at 18:00 GMT.

At 09:26 GMT, September E-mini NASDAQ-100 Index futures are trading 7732.25, up 64.25 or +0.84%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of closing price reversal bottoms at 7388.25 and 7224.50. Both are also secondary higher bottoms.

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 minor trend will change to up on a move through 7752.00. If this occurs then 7652.25 will become the new minor bottom.

The short-term range is 8051.75 to 7224.50. Its retracement zone at 7638.00 to 7735.75 is potential resistance. The market is currently trading at the upper end of this zone.

The main retracement zone at 7510.25 to 7382.50 is major support.

Daily Technical Forecast

Based on the early price action and the current price at 7732.25, the direction of the September E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 7731.75 and the short-term Fibonacci level at 7735.75.

Bullish Scenario

A sustained move over 7735.75 will indicate the presence of buyers. Taking out 7752.00 will change the minor trend to up. This could lead to a test of the main top at 7789.50.

A trade through 7789.50 will change the main trend to up. This could trigger an acceleration to the upside with the next targets an uptrending Gann angle at 7866.50 and a downtrending Gann angle at 7891.75.

Bearish Scenario

A sustained move under 7731.75 will signal the presence of sellers. This could trigger a hard break into a steep uptrending Gann angle at 7644.25 and the short-term 50% level at 7638.00.

The 50% level at 7638.00 is a potential trigger point for an acceleration to the downside with the next target angle coming in at 7516.25. This is the last potential support angle before the 7510.25 main bottom.