E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Key Level on Weekly Chart is 7022.25

March E-mini NASDAQ-100 Index futures closed higher last week, continuing the rally that began the last week of December. The rally was primarily driven by increasing hope that the U.S. and China were moving closer to a trade deal. The U.S. is on a bank holiday, which means the NASDAQ Exchange is closed. There is limited electronic trading during today’s shortened session, but volume is expected to be well below average so proceed at your own risk.

Last week, March E-mini NASDAQ-100 Index futures settled at 7063.75, up 147.00 or +2.08%.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum has been trending higher since the formation of a closing price reversal bottom the week-ending December 28.

The main trend will change to up on a trade through 7169.00. This is the eighth week up from the weekly closing price reversal bottom so we have to start watching for the formation of a potentially bearish closing price reversal top.

The main range is 7765.00 to 5820.50. Its retracement zone at 6792.75 to 7022.25 is controlling the longer-term direction of the index on the weekly chart.

Weekly Technical Forecast

Based on last week’s price action and the close at 7063.75, the direction of the March E-mini NASDAQ-100 Index this week is likely to be determined by trader reaction to the Fibonacci level at 7022.25.

Bullish Scenario

A sustained move over 7022.25 will indicate the presence of buyers. The first target is a downtrending Gann angle at 7125.00.

Taking out 7125.00 will indicate the buying is getting stronger with the next target the main top at .7169.00. Taking out this level will change the main trend to up. This could trigger an acceleration to the upside with the next target angle coming in at 7445.00.

Bearish Scenario

A sustained move under 7022.25 will signal the presence of sellers. If the selling pressure increases then look for a break into the steep uptrending Gann angle at 6844.50. Look for a technical bounce on the first test of this angle. If it fails then look for the selling to possibly extend into the 50% level at 6792.75.

The 50% level at 6792.75 is the most important support for longer-term traders.