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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Key Upside Target Angle 7697.00; Nearest Support Angle 7486.75

By:
James Hyerczyk
Published: Sep 4, 2018, 02:16 UTC

Based on the strength of last week’s rally, the direction of the September E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to last week’s high at 7697.00. Taking out 7697.00 then turning lower for the week will indicate the selling is greater than the buying at current price levels. This will put the index in a position to form a potentially bearish closing price reversal top. This could also signal the start of a 2 to 3 week correction.

E-mini NASDAQ-100 Index

September E-mini NASDAQ-100 Index futures finished sharply higher last week after hitting an all-time high. The catalyst behind the rally was optimism that the economy will continue to grow after the U.S. and Mexico announced a new trade deal. Strong preliminary GDP data also set an upbeat tone. The tech-based futures contract was also supported by a strong performance in shares of Amazon, which hit $2000 per shares for the first time.

E-mini NASDAQ-100 Index
Weekly September E-mini NASDAQ-100 Index

 Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 7166.75 will change the main trend to down. A move through last week’s high at $7697.00 will indicate the buying is getting stronger.

Due to the prolonged move up in terms of price and time, we still have to watch for a closing price reversal top. This chart pattern will not indicate a change in trend, but it may mean that the selling is greater than the buying at current price levels.

Weekly Technical Forecast

Based on the strength of last week’s rally, the direction of the September E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to last week’s high at 7697.00.

A sustained move over 7697.00 will indicate the presence of buyers. This could lead to a test of the steep uptrending Gann angle at 7748.25. This angle stopped the rally last week.

Crossing to the strong side of the uptrending Gann angle at 7748.25 will put the index in an extremely bullish position.

A sustained move under 7697.00 will signal the presence of sellers. The weekly chart indicates there is plenty of room to the downside with the next major target angle coming in at 7486.75. Since the main trend is up, look for buyers to come in on the first test of this angle.

If 7486.75 fails as support then we could see another acceleration to the downside with the next target angle coming in at 7326.75.

Taking out 7697.00 then turning lower for the week will indicate the selling is greater than the buying at current price levels. This will put the index in a position to form a potentially bearish closing price reversal top. This could also signal the start of a 2 to 3 week correction.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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