E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 27, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading lower on Wednesday shortly after the cash market opening. Currently, the index is trading at its low for the session.  Stocks are being pressured as Fed Chairman Jerome Powell begins his second day of testimony before a House committee.

On Tuesday, Powell said the central bank remains “patient” in its approach to monetary policy. He further described the U.S. economic outlook as “generally favorable”, but one that faces challenges from abroad.

Powell’s goal is to not disturb the markets. He has learned from mistakes made in the recent past, and is likely to try to present a consistent message today.

At 15:18 GMT, March E-mini NASDAQ-100 Index futures are trading 7066.00, down 51.75 or -0.73%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7168.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 6841.00.

The minor trend is also up. The minor trend changes to down on a move through 7005.00, followed by another minor bottom at 6972.00.

The short-term range is 7005.00 to 7168.50. Its 50% level or pivot is 7086.75. This level is controlling the direction of the index on Wednesday.

The main range is 6841.00 to 7168.50. Its retracement zone at 7004.75 to 6066.00 is the primary downside target. An additional support level is the major Fibonacci level at 7022.25.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the pivot at 7086.75.

Bullish Scenario

Overtaking and sustaining a rally over 7086.75 will indicate the return of buyers. This could lead to a test of a downtrending Gann angle at 7152.50. Overtaking this angle will indicate the buying is getting stronger with the next target angle coming in at 7136.50. This is followed by still another Gann angle at 7152.50. This is the last potential resistance angle before the 7168.50 main top and the December 3 main top at 7169.00.

Bearish Scenario

A sustained move under 7086.75 will signal the presence of sellers. This could trigger a further break into an uptrending Gann angle at 7033.00.

If 7033.00 fails as support then look for the selling to extend into the major Fib level at 7022.5, followed by the minor bottom at 7005.00 and the main 50% level at 7004.75.

The 50% level at 7004.75 is actually another trigger point for an acceleration into 6972.00 and 6966.00.

The downside momentum seems to be strong so don’t be surprised by a break into 7022.25 to 7004.75. A test of this zone could put the market in oversold territory so watch for buyers to re-emerge.