E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 2, 2018 Forecast

September E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. The index is basically following the weaker markets in Asia and Europe which are reacting to trade war concerns.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is slightly higher due to Thursday’s closing price reversal bottom and Friday’s subsequent confirmation of the chart pattern.

A trade through 6956.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor trend will change to up on a move through 7123.75. This will also confirm the shift in momentum to the upside.

The main range is 6855.50 to 7358.50. Its retracement zone at 7107.00 to 7047.75 is controlling the near-term direction of the index.

The short-term range is 7358.50 to 6956.00. Its retracement zone at 7157.25 to 7204.75 is a potential upside target.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the Fib level at 7047.75.

A sustained move under 7047.75 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the uptrending Gann angle at 6963.50. This angle stopped the selling on June 28.

If 6963.50 fails as support then look for a possible move into a pair of uptrending Gann angles at 6909.50 and 6882.50. The latter is the last potential support angle before the 6855.50 main bottom.

Overcoming 7047.75, will signal the return of buyers. This could trigger a fast move into an uptrending Gann angle at 7071.50. Crossing to the strong side of this angle will indicate the buying is getting stronger with the next targets a 50% level at 7107.00 and a steep downtrending Gann angle at 7134.50.

If buyers overtake 7134.50 then look for the next shorting opportunity to come in on a test of 7157.25 to 7204.75.