E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 7, 2018 Forecast

March E-mini NASDAQ-100 Index futures are called steady to lower based on the pre-market trade. The price action is being controlled by a series of weekly retracement levels.

Weekly Chart Analysis

The main trend is up according to the weekly swing chart, however, momentum is down due to the formation of last week’s closing price reversal top and subsequent confirmation earlier this week.

The main trend will change to down on the weekly chart on a move through 6250.00. A trade though 7047.25 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is down.

The main range is 5589.25 to 7047.25. Its retracement zone at 6318.25 to 6146.25 provided support on Tuesday when the index hit 6261.50.

The intermediate range is 5776.00 to 7047.25. Its retracement zone at 6411.50 to 6261.50 also provided support.

The short-term range is 6250.00 to 7047.25. This zone is currently being tested and could become resistance.

Daily Chart Analysis

Switching to the daily chart, the main range is 7047.25 to 6260.25. Its retracement zone is 6653.75 to 6746.75. This zone is currently being tested.

The short-term range is 6260.25 to 6677.50. Its retracement zone at 6469.00 to 6419.50 is possible support.

Forecast

Based on the early price action, the key price to watch today will be 6653.75.

A sustained move under 6653.75 will indicate the presence of sellers. Crossing to the weak side of a steep downtrending Gann angle at 6599.25 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next target zone coming in at 6468.75 to 6419.50.

Watch the price action and read the order flow on a test of 6468.75 to 6419.50 because buyers are going to try to form a secondary higher bottom.  If it fails then look for the selling to extend into 6260.25.

A sustained move over 6653.75 will signal the presence of buyers. Taking out 6677.50 will indicate the buying is getting stronger. This could lead to a test of the Fibonacci level at 6746.75. Look for the rally to strengthen on a move through this level with potential Gann angle targets coming in at 6823.25 and 6935.25.