E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 7, 2019 Forecast

Based on 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 main Fibonacci level at 6485.75.
James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Profit-taking after Friday’s strong surge is pressuring the market. The index is also up seven sessions from the December 26 main bottom, which puts it inside the window of time for a potentially bearish closing price reversal top.

At 1344 GMT, March E-mini NASDAQ-100 Index futures are trading 6424.00, down 10.00 or -0.16%.

Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out 6409.25. The new main bottom is 6136.50. A trade through this bottom will change the main trend to down.

The main range is 6897.00 to 5820.50. The index is currently testing is retracement zone at 6358.75 to 6485.75. Trader reaction to this zone will determine the near-term direction of the index.

Daily Technical Forecast

Based on 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 main Fibonacci level at 6485.75.

Bullish Scenario

Taking out 6485.75 will indicate the presence of buyers. This level is a potential trigger point for an acceleration to the upside. The daily chart indicates there is plenty of room to the upside with the next target angle coming in at 6641.00.

Bearish Scenario

A sustained move under 6485.75 will signal the presence of sellers. If this creates enough downside momentum then look for a test of the downtrending Gann angle at 6385.00. Crossing to the weak side of this angle will put the index in a bearish position. This should lead to a quick break into the 50% level at 6358.75.

The 50% level at 6358.75 is the trigger point for an acceleration to the downside with the next target an uptrending Gann angle at 6268.50.

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