E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 14, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading slightly higher early Thursday, recovering from early session weakness. The price action suggests investors are taking a cautious approach as high-level trade negotiations take place in Beijing. On Friday, the U.S. delegation of negotiators is tentatively scheduled to meet with Chinese President Xi Jinping.

At 06:22 GMT, March E-mini NASDAQ-100 Index futures are trading 7036.50, up 20.25 or +0.29%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may have shifted to the downside on Wednesday with the formation of a closing price reversal top and today’s confirmation of the chart pattern earlier in the session.

There wasn’t much of a follow-through to the downside following yesterday’s potentially bearish chart pattern, however, taking out today’s intraday low at 7002.50 will indicate the selling pressure is getting stronger. This could lead to a 2 to 3 day counter-trend break.

A trade through 7069.75 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 6841.00 will change the main trend to down.

The major retracement zone support is 7022.25 to 6792.75. This zone is controlling the longer-term direction of the index.

The short-term range is 6841.00 to 7069.75. If the selling pressure resumes then its retracement zone at 6955.25 to 6928.25 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index on Thursday 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. If this move generates enough upside momentum then look for buyers to take out yesterday’s high at 7069.75. This should trigger a quick rally into a steep uptrending Gann angle at 7097.00.

Crossing to the strong side of the Gann angle at 7097.00 will put the index in an extremely bullish position with the next target the December 3 main top at 7169.00.

Bearish Scenario

A sustained move under 7022.25 will signal the presence of sellers. If this move can create enough downside momentum then look for the selling to possibly extend into the uptrending Gann angle at 6969.00, followed by the short-term retracement zone at 6955.25 to 6928.25. Since the main trend is up, buyers could re-emerge on a test of this area.