E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 22, 2018 Forecast

March E-mini NASDAQ-100 Index futures are trading about 0.50% higher shortly after the cash market session. The inability to follow-through to the downside with great passion, following yesterday’s impressive closing price reversal top, encouraged short-sellers to book profits while attracting some speculative buying.

 Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. After a seven-day counter-trend rally, the index posted a potentially bearish closing price reversal top on Wednesday. The chart pattern was confirmed earlier in the session, but the sell-off stalled.

The current two-sided trade is making it difficult to get a grasp on the direction of momentum.

A trade through 6885.50 will negate the closing price reversal top and indicate the buying is getting stronger. If this move creates enough upside momentum, then we could see an eventual test of the all-time high at 7047.25.

The main range is 7047.25 to 6164.00. Its retracement zone is 6709.75 to 6605.50. This zone provided support earlier in the session. The direction of the index today is likely to be determined by trader reaction to this retracement zone. Holding above this zone at this time is giving the index an upside bias.

The short-term range is 6164.00 to 6885.50. Its retracement zone at 6524.75 to 6439.50 is the primary downside target. This is followed by a major 50% to 61.8% retracement zone at 6411.50 to 6261.50.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to Fibonacci level at 6709.75.

A sustained move over 6709.75 will indicate the presence of buyers. If this move creates enough upside momentum then we could see a test of 6885.50. This price is a potential trigger point for an acceleration into the next main top at 7047.25.

A sustained move under 6709.75 will signal the presence of sellers. Crossing to the weak side of this level will put the index in a potentially bearish position. Taking out today’s intraday low could trigger an acceleration to the downside with 6605.50 the next downside target.

If 6605.50 fails as support then look for further selling pressure to drive the index into the short-term retracement zone at 6524.75 to 6439.50.