E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Main Trend Changes to Up on Move Through 7047.25

The March E-mini NASDAQ-100 Index settled higher last week. The futures contract finished the week at 6909.75, up 123.00 or +1.81%.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. A trade through 7047.25 will change the main trend to up.

The short-term range is 7047.25 to 6164.00. Its retracement zone is 6709.75 to 6605.50. Given last week’s close, this zone is new support. Holding above this area is helping to give the index an upside bias.

On the downside, support is a pair of 50% levels at 6411.50 and 6318.25, a Fibonacci level at 6261.50, a main bottom at 6164.00 and another Fibonacci level at 6146.25.

Weekly Technical Forecast

Based on last week’s price action and close at 6909.75, the direction of the index this week is likely to be determined by trader reaction to downtrending Gann angle at 6919.25 and a steep uptrending Gann angle at 6932.00.

A sustained move under 6919.25 will indicate the presence of sellers. If downside momentum begins to build on this move then we could see a break into 6709.75 to 6605.50, followed by another uptrending Gann angle at 6548.00.

A failure to hold 6548.00 and taking out this Gann angle with conviction could trigger a further break into the previously mentioned retracement levels.

A sustained move over 6919.25 will signal the presence of buyers. Overtaking the steep uptrending Gann angle at 6932.00 will indicate the buying is getting stronger. This could fuel a rally into a pair of downtrending Gann angles at 6983.25 and 7015.25. The latter is the last potential resistance angle before the 7047.25 main top.

Essentially, we’re looking for weakness to develop on a sustained move under 6919.25 and for an upside bias to develop on a sustained move over 6932.00.