Based on the current price at 7143.00 and the strong upside momentum, the next upside target is the steep downtrending Gann angle at 7257.00. This is followed by the short-term 50% level at 7291.25.
June E-mini NASDAQ-100 Index futures are trading higher at the midsession on Tuesday. The rally is being fueled by optimism that U.S.-China trade talks may resume over the near-term. Furthermore, Federal Reserve Chairman Jerome Powell signaled the central bank was open to easing monetary policy to save the economy. Trade tensions also eased amid comments from Mexico.
At 18:34 GMT, June E-mini NASDAQ-100 Index futures are at 7143.00, up 149.00, or 2.11%.
The main trend is down according to the daily swing chart. A trade through 6941.25 will signal a resumption of the downtrend. The main trend will change to up on a trade through 7641.00. This is highly unlikely, but there is room for a normal 50% to 61.8% retracement.
The main range is 5847.25 to 7879.50. Its retracement zone at 6863.25 to 6623.50 is a potential support area.
The short-term range is 7641.00 to 6941.25. Its retracement zone at 7291.13 to 7373.70 is the primary upside target.
Based on the current price at 7143.00 and the strong upside momentum, the next upside target is the steep downtrending Gann angle at 7257.00. This is followed by the short-term 50% level at 7291.25.
On the downside, the nearest target is a steep downtrending Gann angle at 7015.50. Crossing to the weak side of this angle will indicate the return of sellers with the next target the minor bottom at 6941.25, followed by the main 50% level at 6863.25.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.