E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Inside Move Indicates Trader Indecision, Impending Volatility

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to last week’s high at 7733.50.
James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are inching higher at the mid-session on Monday. Volume is below average as investors appear to continue to be in holiday-mode. Traders are clearly focused on earnings season with the bombing on Sunday in Sri Lanka and a nearly 3 percent surge in crude oil prices having little effect on the price action. Later this week, traders will get the opportunity to react to earnings releases from tech giants Facebook and Microsoft.

At 15:30 GMT, June E-mini NASDAQ-100 Index futures are trading 7722.50, up 10.00 or +0.13%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7733.50 will signal a resumption of the uptrend. This could trigger an extension of the rally into the October 3, 2018 main bottom at 7767.00.

The main trend is safe for now, but there is always the possibility of a closing price reversal top. Furthermore, a shift in momentum could trigger a normal 50% to 61.8% retracement.

The minor trend is also up. A trade through 7660.25 will change the minor trend to down. This will also shift momentum to the downside. Additional minor trend bottom targets come in at 7598.75 and 7575.75.

The main range is 7276.00 to 7733.50. If the minor trend changes to down or a closing price reversal top forms then its retracement zone at 7504.75 to 7450.75 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to last week’s high at 7733.50.

Bullish Scenario

Taking out 7733.50 and sustaining the move will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into the October 3, 2018 main top at 7767.00. Taking out this top could trigger an acceleration to the upside with the next target angle coming in at 7820.00.

Crossing to the strong side of the uptrending Gann angle at 7820.00 will put the index in a bullish position.

Bearish Scenario

The inability to overcome 7733.50 will signal the presence of sellers. If this creates enough downside momentum then look for sellers to go after the minor bottom at 7660.25. This will shift momentum to the downside and could trigger a further break into a pair of minor bottoms at 7598.75 and 7575.75.

Closing Price Reversal Top Scenario

Taking out 7733.50 then moving below 7712.50 will put the market in a position to post a potentially bearish closing price reversal top. This could trigger the start of a 2 to 3 day correction.

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