E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 6, 2018 Forecast

September E-mini NASDAQ-100 Index futures are presenting a mixed picture shortly before the cash market opening. Investors are taking a cautious approach today in response to trade concerns between the US and China.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7530.00 will change the main trend to up. A move through 7166.75 will signal a resumption of the downtrend.

The short-term range is 7530.00 to 7166.75. The market is currently trading on the strong side of its retracement zone at 7391.25 to 7348.25, giving it a slightly upside bias. The retracement zone is new support.

The main range is 6956.00 to 7530.00. Its retracement zone at 7243.00 to 7175.25 is the major support. This zone stopped the selling last week.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index today is likely to be determined by trader reaction to the downtrending Gann angle at 7402.00.

A sustained move over 7402.00 will indicate the presence of buyers. If this move can generate enough upside momentum then look for the rally to extend into the next downtrending Gann angle at 7466.00. The rally could then become labored over this angle with potential target angles at 7498.00 and 7514.00. The latter is the last potential resistance angle before the 7530.00 main top.

The inability to overcome 7402.00 will signal the presence of sellers. Early targets are 7391.25 and 7372.00.

The daily chart begins to open up to the downside under 7372.00 with new targets coming in at 7348.25 and 7326.75.

The uptrending Gann angle at 7326.75 is the trigger point for an acceleration to the downside with the next targets 7246.75 and 7243.00.

Basically, the index will strengthen over 7402.00 and weaken under 7372.00. Trading between these angles will create a choppy, two-sided trade.