E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 7, 2018 Forecast

September E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. Strong earnings are overcoming concerns over the escalating trade dispute between the United States and China. This is leading to increased demand for higher risk assets.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 7530.00 will change the main trend to up. The downtrend will resume on a move through 7166.75.

Buyers aren’t out of the woods yet despite the strong six-day rally. The best sign of renewed selling pressure will be a closing price reversal top.

The minor trend is up. It turned up earlier today when buyers took out 7467.00. This also shifted momentum to the upside.

The intermediate range is 7530.00 to 7166.75. Its retracement zone at 7391.25 to 7348.25 is the first support area.

The short-term range is 7166.75 to 7474.50. Its retracement zone at 7320.50 to 7284.25 is additional support. This zone will move up if buyers take out 7474.50.

The major retracement zone support is 7243.00 to 7175.25.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to yesterday’s close at 7444.00.

A sustained move over 7444.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible near-term test of 7530.00.

A sustained move under 7444.00 will signal the presence of sellers. If selling volume increases on the move then look for a pullback into layers of potential support at 7391.25, 7348.25, 7320.50 and 7284.25.

Watch the price action and read the order flow at 7444.00 all session. Trader reaction to this level will tell us if the buyers or sellers are in control.