E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 22, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading slightly lower on Thursday. There has been no follow-through to the downside after yesterday’s steep sell-off. Prices tumbled on Thursday following the release of disappointing U.S. economic data and amid ongoing high level trade negotiations between the Trump administration and its Chinese counterparts.

At 07:15 GMT, March E-mini NASDAQ-100 Index futures are trading 7025.75, down 8.75 or -0.12%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside on Thursday. The index also formed a potentially bearish closing price reversal top.  A trade through 7005.00 will confirm the chart pattern. This could trigger the start of a 2 to 3 day correction.

A trade through 7113.75 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is down. It changed to down on a trade through 7032.25. This also shifted momentum to the downside.

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

The short-term range is 6841.00 to 7113.75. Its retracement zone at 6977.25 to 6945.00 is the primary downside target. We could see a technical bounce on the first test of this area.

Daily Technical Forecast

Based on the early price action and yesterday’s move, the direction of the March E-mini NASDAQ-100 Index on Friday 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 creates enough upside momentum, we could see a retracement into a minor 50% level at 7059.50. Sellers may show up on a test of this level. Taking it out could trigger a further rally into the minor top at 7113.75, followed by an uptrending Gann angle at 7129.00. Overtaking this angle will put the index in a bullish position.

Bearish Scenario

A sustained move under 7022.25 will signal the presence of sellers. Taking out 7005.00 will indicate the selling is getting stronger. This could extend the break into an uptrending Gann angle at 6985.00, followed by the short-term 50% level at 6977.25. This is followed closely by a minor bottom at 6972.00.

If 6972.00 fails as support then look for the selling to possibly extend into the short-term Fibonacci level at 6945.00.