E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 29, 2019 Forecast

September E-mini NASDAQ-100 Index futures are trading sharply higher shortly before the cash market opening after recovering from early session weakness. The rebound is being fueled by positive comments from Gao Feng, spokesman for China’s Ministry of Commerce. Gao said that China wants to “collaborate in order to solve this problem with a calm attitude.” The comment eased fears over a global economic slowdown, sending investors out of safe assets like Treasurys and into higher-yielding stocks.

At 11:18 GMT, September E-mini NASDAQ-100 Index futures are trading 7685.75, up 86.50 or +1.14%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 7353.25 on August 26.

A trade through 7782.25 will change the main trend to up. A move through 7353.25 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor trend is up. It changed to up earlier today when buyers took out the minor top at 7648.50. This move shifted momentum to the upside. The new minor bottom is 7504.25. The minor trend will change to down on a trade through this level.

The main range is 8051.75 to 7224.50. Its retracement zone at 7510.25 to 7382.50 is controlling the near-term direction of the index. It is major support.

The short-term range is 8051.75 to 7224.50. Its retracement zone at 7638.25 to 7735.75 is currently being tested. It is potential resistance. The objective of the buyers today is to cross to the bullish side of this zone.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 7685.75, the direction of the September E-mini NASDAQ-100 Index the rest of the session on Thursday is likely to be determined by trader reaction to the short-term 50% level at 7638.25.

Bullish Scenario

A sustained move over 7638.25 will indicate the presence of buyers. If they can create enough upside momentum then look for the rally to extend into the short-term Fibonacci level at 7735.75.

Taking out 7735.75 will indicate the buying is getting stronger with the next two targets main tops at 7782.25 and 7789.50. Taking out these tops will signal a change in trend to up. This could trigger an acceleration to the upside with the next major target the July 24 main top at 8051.75.

Bearish Scenario

A sustained move under 7638.00 will signal the presence of sellers. The first downside targets are the main 50% level at 7510.25 and the minor bottom at 7504.25. If the minor bottom fails to hold then look for a break into the main Fibonacci level at 7382.50, followed by the main bottom at 7353.25. This price is the trigger point for an acceleration to the downside.