E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 14, 2019 Forecast

June E-mini NASDAQ-100 Index futures are trading higher, reversing earlier weakness as bargain-hunters returned to the market following Monday’s steep sell-off. A relative calm is sweeping across the market after traders had a day to assess China’s answer to the new tariffs imposed by the U.S. late last week.

The early price action has put the index in a position to post a potentially bullish closing price reversal bottom. This could fuel a 2 to 3 day counter-trend rally.

At 14:59 GMT, June E-mini NASDAQ-100 Index futures are trading 7370.00, up 55.75 or +0.77%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but the momentum is trending lower. A trade through today’s intraday low at 7290.00 will signal a resumption of the downtrend. A move through 7276.00 will change the main trend to down. If this creates enough downside momentum then look for a further break into the next main bottom at 6965.75.

A trade through 7879.50 will signal a resumption of the uptrend. This is highly unlikely, but due to the prolonged move down in price and time, the market is inside the window of time for a closing price reversal bottom. This chart pattern will signal that the buying is greater than the selling at current price levels.

The short-term range is 6965.75 to 7879.50. The index is currently straddling its retracement zone at 7422.75 to 7314.75. Trader reaction to this zone will determine the near-term direction of the index.

On the downside, the major Fibonacci level at 7035.00 is potential support.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to yesterday’s close at 7314.25.

Bullish Scenario

A sustained move over 7314.25 will indicate the presence of buyers. Overcoming the short-term Fibonacci level at 7314.75 will indicate the buying is getting stronger. This could trigger a further rally into the long-term uptrending Gann angle at 7367.25.

Overcoming 7367.25 will indicate the buying is getting stronger. This could trigger a further rally into the short-term 50% level at 7422.75, followed by the downtrending Gann angle at 7463.50.

The downtrending Gann angle at 7463.50 is the trigger point for an acceleration to the upside. The daily chart indicates there is room to rally with the next target angle coming in at 7671.50.

Bearish Scenario

A failure to overcome 7367.25 will signal the presence of sellers. This could lead to a retest of yesterday’s close at 7314.25. Turning lower for the session will indicate the selling is getting stronger. This could create the momentum needed to take out 7290.00 and 7276.00. The latter is the trigger point for a steep sell-off.