E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 31, 2018 Forecast

September E-mini NASDAQ-100 Index futures are called higher based on the pre-market trade. The index is trading inside yesterday’s range which suggests investor indecision and impending volatility. Traders may hold the index in a range because of the release of Apple’s earning report which comes out after the close.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through yesterday’s low at 7166.75 will signal a resumption of the downtrend.

The main range is 6956.00 to 7530.00. The market is currently testing its retracement zone at 7243.00 to 7175.25. This zone is controlling the longer-term direction of the index. Currently, it is sitting inside this range.

Daily Technical Forecast

The direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7243.00 and the 61.8% level at 7175.25.

Taking out and sustaining a move over 7243.00 will indicate the presence of buyers. This could trigger a rally into the steep downtrending Gann angle at 7274.00. Since the trend is down, sellers could come in on the first test of this angle. However, breaking out over this angle could trigger an acceleration to the upside with targets at 7308.00 and 7402.00.

A failure to overcome 7243.00 will signal the presence of sellers. This could lead to a test of the Fibonacci level at 7175.25. Crossing to the weak side of this level will indicate the selling is getting stronger.

Breaking 7175.25 could drive the index into an uptrending Gann angle at 7132.00. Taking out this angle could trigger an even steeper break into the next uptrending Gann angle at 7044.00. This is the last potential support angle before the 6956.00 main bottom.