E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 23, 2018 Forecast

September E-mini NASDAQ-100 Index futures are expected to open nearly flat based on the pre-market trade. The index is trading inside yesterday’s range, but at the high side of the range. This indicates investor indecision and impending volatility, but with a slight bias to the upside.

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 with 7530.00 the next target. A trade through 7316.50 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 7452.25 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is 7505.50 to 7316.50. The index is currently testing its retracement zone at 7411.00 to 7433.25. This zone is controlling the short-term direction of the market.

On the downside support is a major 50% level at 7438.25, another 50% level at 7336.00 and a Fibonacci level at 7296.00.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index today is likely to be determined by trader reaction to the short-term Fib at 7433.25.

A sustained move over 7433.25 will indicate the presence of buyers. This could trigger a rally into the minor top at 7452.25, followed by a downtrending Gann angle at 7465.50. The next Gann angle drops in at 7485.50. This is the last potential resistance angle before the 7505.50 main top.

A sustained move under 7433.25 will signal the presence of sellers. Crossing to the weak side of a downtrending Gann angle at 7425.50 will indicate the selling is getting stronger.

Look for a potential acceleration to the downside if the 50% level at 7411.00 fails as support. The daily chart indicates there is plenty of room to the downside with targets coming in at 7348.25, 7336.00 and 7310.75.

Basically, look for the index to strengthen over 7433.25 and weaken under 7411.00.