E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 31, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. A dovish Fed may be underpinning the index, but the pre-market surge is likely being fueled by a strong performance in shares of Facebook, which gained after the company released better-than-expected earnings after the close on Wednesday. After the closing bell, Amazon will release its fourth-quarter earnings results.

At 12:57 GMT, March E-mini NASDAQ-100 Index futures are trading 6873.75, up 36.50 or +0.53%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Wednesday when buyers took out the previous main top at 6828.25. Taking out this top with conviction could trigger a further rally into the next main top at 6897.00. This is followed by the next main top at 7169.00. A trade through 6592.25 will change the main trend to down.

The minor trend is also up. A trade through 6616.75 will change the minor trend to down. This will shift momentum to the downside.

The index is currently trading inside a major retracement zone at 6792.75 to 7022.25. This zone is controlling the longer-term direction of the index.

Additional support is the retracement zone at 6653.75 to 6494.75.

Daily Swing Chart Technical Forecast

Based on yesterday’s close and 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 major 50% level at 6792.75.

Bullish Scenario

A sustained move over 6792.75 will indicate the presence of buyers. If this move can create enough upside momentum then look for buyers to take a run at the next main top at 6897.00. Taking out this top will reaffirm the uptrend. This could trigger a surge into the major Fibonacci level at 7022.25.

Bearish Scenario

A sustained move under 6792.75 will signal the presence of sellers. If sellers come in strong then look for a possible spike into the short-term Fibonacci level at 6653.75.