E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Closing Price Reversal Bottom Forms On Close Over 7642.50

A mid-session turnaround has put the June E-mini NASDAQ-100 in a position to turn higher for the day. This would form a closing price reversal bottom, signaling the buying is greater than the selling at current price levels. If confirmed, this chart pattern could lead to the start of a 2 to 3 counter-trend rally.

At 19:49 GMT, June E-mini NASDAQ-100 Index futures are trading 7580.00, down 65.50 or -0.85%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 7481.00 will indicate the return of sellers. The next main bottom comes in at 7276.00.

A trade through 7879.50 will signal a resumption of the uptrend. This is highly unlikely, but the prolonged move down in terms of price and time has put the index in the window of time for a closing price reversal bottom. If formed then confirmed, we could see a 2 to 3 day counter-trend rally.

The major retracement zone support is 7422.50 to 7314.75. This is the next potential downside target. Since the main trend is up, buyers could come in on a test of this area.

The main range is 7276.00 to 7879.50. Its retracement zone at 7577.75 to 7506.50 was straddled earlier in the session. Value-seekers may be trying to establish a support base inside this zone.

The short-term range is 7879.50 to 7481.00. If the intraday upside momentum continues then look for the rally to possibly extend into its retracement zone at 7680.25 to 7727.25.

Daily Swing Chart Technical Forecast

Based on the current price at 7580.00, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the 50% level at 7577.75.

Bullish Scenario

A sustained move over 7577.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into yesterday’s close at 7642.50. Overtaking this level will turn the market higher for the session. This could trigger a further rally into the retracement zone at 7680.25 to 7727.25. The latter is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 7577.75 will signal the presence of sellers. This could trigger a break into 7506.50, followed closely by the intraday low at 7481.00.