E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 13, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading higher early Wednesday after market sentiment got a boost on news U.S. lawmakers had secured a tentative deal on border security funding. The drafted agreement, which congressional aides said did not contain funds for a border wall, could help avert another partial government shutdown due to begin on Saturday.

At 05:31 GMT, March E-mini NASDAQ-100 Index futures are at 7054.75, up 36.25 or +0.52%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early Wednesday when buyers took out the previous main top at 7038.75. The main trend will change to down on a trade through 6841.00.

The index is also trading on the strong side of a major retracement zone at 7022.25 to 6792.75. This zone is controlling the longer-term direction of the index. Consider it long-term support.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index futures contract on Wednesday is likely to be determined by trader reaction to the major Fibonacci level at 7022.25.

Bullish Scenario

A sustained move over 7022.25 will indicate the presence of buyers. Holding above 7038.75 will indicate the buying is getting stronger. If this move continues to generate enough upside momentum, we could see an eventual move into the December 3 main top at 7169.00.

Bearish Scenario

The inability to sustain a move over 7038.75 will signal the return of sellers. It will also indicate that today’s move through this level was fueled by short-covering and weak buy stops.

A sustained move under 7022.25 will signal the selling is getting stronger. The daily chart indicates there is plenty of room to the downside under this level with the first target a minor pivot at 6949.25. If this level fails as support then look for the index to possibly extend into the main bottom at 6841.00. A trade through this level will change the main trend to down.

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