E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Bears Trying to Defend 7817.75 – 8098.50

June E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. Most of its gains so far, however, were generated during the pre-market session. The NASDAQ Composite is up about 3.7% in the early go.

Optimism is helping to infuse stability in the market with traders reacting to a slower-death rate in New York coronavirus cases. Furthermore, a marked slowing increase in death rates and new infections in the hardest-hit countries, such as Italy and Spain, also sparked some positive momentum in global equities.

At 13:48 GMT, June E-mini NASDAQ-100 Index futures are trading 7804.25, up 281.50 or +3.74%.

Before you get too bullish, keep in mind that President Trump went from warning, “This is Going to Be A Bad Week” to COVID-19 cases were “leveling off” within a few days.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7995.00 will signal a resumption of the uptrend. A trade through 7376.00 will change the main trend to down.

The short-term range is 6628.75 to 7995.00. Its retracement zone at 7311.75 to 7150.50 is a support zone.

The intermediate range is 9006.75 to 6628.75. Its retracement zone at 7817.75 to 8098.50 is potential resistance. This zone stopped the rally at 7995.00 on March 31.

The main range is 9780.50 to 6628.75. Its retracement zone at 8304.75 to 8653.00 is the major upside target.

Daily Technical Forecast

Based on the early price action and the current price at 7804.25, the direction of the June E-mini NASDAQ-100 Index futures contract the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at 7817.75.

Bullish Scenario

A sustained move over 7817.75 will indicate the presence of buyers. Overcoming the steep uptrending Gann angle at 7908.75 will indicate the buying is getting stronger. This could trigger a further rally into the main top at 7995.00 and the Fibonacci level at 8098.50.

Bearish Scenario

A sustained move under 7817.75 will signal the presence of sellers. Crossing to the weak side of a downtrending Gann angle at 7732.25 will indicate the selling is getting stronger. This could trigger a break into the next downtrending Gann angle at 7470.75, followed by the main bottom at 7376.00.