E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – In Position to Post Weekly Closing Price Reversal Top

March E-mini NASDAQ-100 Index futures are trading lower at mid-week, putting the index in a position to close lower for the first time since the week-ending December 21. More importantly, the index is in a position to post a potentially bearish closing price reversal top. If confirmed, this chart pattern can trigger the start of a 2 to 3 week correction.

At 02:10 GMT, March E-mini NASDAQ-100 Index futures are trading 7104.00, down 7.25 or -0.11%. Last week’s close was 7156.00.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. It turned up early this week when buyers took out the previous main top at 7169.00.

The main range is 7765.00 to 5820.50. Its retracement zone at 7022.25 to 6792.75 is controlling the longer-term direction of the index. Trading above this zone will give the index an upside bias. Traders should treat this zone like support.

Weekly Technical Forecast

Based on this week’s price action, the direction of the March E-mini NASDAQ-100 Index the rest of the week is likely to be determined by trader reaction to the steep uptrending Gann angle at 7100.50.

Bullish Scenario

Overcoming and sustaining a rally over 7100.50 will indicate the presence of buyers. The first upside target is last week’s close at 7156.00. Overtaking this level will put the index in a position to close higher for the week.

Taking out 7211.50 will signal a resumption of the uptrend. If this move creates enough upside momentum then look for the rally to possibly extend into the next downtrending Gann angle at 7413.00.

Bearish Scenario

A sustained move under 7100.50 will signal the presence of sellers. The first targets are a downtrending Gann angle at 7061.00 and the major Fibonacci level at 7022.25.

The trigger point for an acceleration to the downside is 7022.25. The weekly chart shows that the market could plunge to 6792.75 if this level is taken out with conviction.