E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 26, 2019 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly better early Monday, recovering from early session weakness. The early selling, which drove the index into its lowest level since August 6, was a follow-through move from Friday.

The index rebounded to turn higher for the session after President Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.

At 07:28 GMT, September E-mini NASDAQ-100 Index futures are trading 7538.00, up 33.50 or -0.45%. The low of the session is 7353.25, the high 7595.00.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed when sellers took out the previous main bottom at 7353.25. A trade through 7782.25 will change the main trend to up. Taking out 7789.50 will reaffirm the change in trend.

The early price action suggests a potentially bullish closing price reversal bottom may be forming.

The main range is 6969.00 to 8051.75. Its retracement zone at 7510.25 to 7382.50 is still controlling the near-term direction of the index. This zone could become support today.

The intermediate range is 8051.75 to 7224.50. Its retracement zone at 7638.25 to 7735.75 is resistance. Overcoming this zone will indicate the counter-trend buying is getting stronger.

Daily Technical Forecast

Based on the early price action and the current price at 7538.00, the direction of the September E-mini NASDAQ-100 Index futures contract the rest of the session is likely to be determined by trader reaction to the main 50% level at 7510.25.

Bullish Scenario

A sustained move over 7510.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the intermediate 50% level at 7638.25, followed by a downtrending Gann angle at 7683.75 and the intermediate 61.8% level at 7735.75.

Overcoming 7735.75 will put the index in a position to challenge the main tops at 7782.25 and 7789.50.

Bearish Scenario

A sustained move under 7510.25 will signal the presence of sellers. The first target is the uptrending Gann angle at 7441.00. This is followed by the main Fibonacci level at 7382.50 and the intraday low at 7353.25.

Taking out 7353.25 could drive the index into the next main bottom at 7224.50 and an uptrending Gann angle at 7205.00.