E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 16, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. The buying isn’t as strong as yesterday’s with most of the money flowing into banking sector stocks in reaction to strong earnings reports from Goldman Sachs and Bank of America. Traders are also assessing the impact of Brexit and potential stimulus from the Peoples’ Bank of China.

At 1431 GMT, March E-mini NASDAQ-100 Index futures are trading 6694.75, up 18.00 or +0.27%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the main top at 6897.00. The main trend will change to down on a trade through 6521.50.

The main range is 6897.00 to 5820.50. Its retracement zone at 6485.75 to 6358.75 is support. Trading on the strong side of this zone is also contributing to the current upside bias.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index futures contract the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at 6713.00 and 6716.50.

Bullish Scenario

Overtaking and sustaining a rally over 6716.50 will indicate the buying is getting stronger. This could create the momentum needed to challenge the next downtrending Gann angle at 6805.00. This is the last potential resistance angle before the 6897.00 main top.

Bearish Scenario

A sustained move under the Gann angle at 6713.00 will signal the presence of sellers. We could see some weakness to develop because the daily chart indicates there is plenty of room to the downside with the next target the major Fibonacci level at 6485.75.