E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 22, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. Traders are responding to oversold conditions and increased demand for higher risk assets in response to speech on the war in Afghanistan on Monday night by President Trump.

Technical Analysis

The main trend is down according to the daily swing chart. However, there was no follow-through to the downside. Today’s price action makes 5752.25 a new minor bottom.

The short-term range is 5949.50 to 5752.25. Its retracement zone at 5851.00 to 5874.25 is the primary upside target.

The next range is 5995.75 to 5752.25. Its retracement zone is 5873.75 to 5902.25.

The two ranges combine to make 5873.75 to 5874.25 the key area to watch today.

Forecast

Based on the current price at 5852.75, the direction of the index the rest of the session is likely to be determined by trader reaction to the resistance cluster at 5851.00 to 5851.75.

A sustained move over the downtrending angle at 5851.75 will signal that the buying is getting stronger. This could create the upside momentum needed to challenge the retracement zone price cluster at 5873.75 to 5874.25. This area is the trigger point for an acceleration into the Fibonacci target at 5902.25.

A sustained move under the short-term 50% level at 5851.00 will indicate the presence of sellers. This could lead to a retracement of the rally from yesterday’s low at 5752.25.

Watch the price action and read the order flow on a test of the retracement zone. Since the main trend is down, sellers may show up to defend the trend. They are going to try to produce a secondary lower top. Buyers are going to try to take out this zone in an effort to make 5752.25 an important swing bottom and possibly change the trend to up over the near-term.