E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 16, 2018 Forecast

Based on yesterday’s action and today’s early move, the direction of the index today is likely to be determined by trader reaction to the main Fibonacci level at 6867.75.
James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading flat shortly before the cash market opening. Traders are digesting economic reports, a drop in Treasury yields and renewed geopolitical tensions over North Korea.

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Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7013.50 will signal a resumption of the uptrend.

The minor trend is also up, however, a new minor top formed at 7013.50 on Tuesday. This is the first sign that momentum may be getting ready to shift to the downside.

The main range is 7214.50 to 6306.75. The index is currently trading on the strong side of its retracement zone at 6867.75 to 6760.50, giving it an upside bias.

The short-term range is 6538.00 to 7013.50. Its retracement zone at 6775.75 to 6719.50 is the primary downside target. The main 50% level at 6760.50 falls inside the short-term retracement zone.

There is a support cluster at 6775.75 to 6750.50. Since the main trend is up, buyers are likely to come in on a test of this area.

Daily Swing Chart Technical Forecast

Based on yesterday’s action and today’s early move, the direction of the index today is likely to be determined by trader reaction to the main Fibonacci level at 6867.75.

A sustained move over 6867.75 will indicate the presence of buyers. If this move generates enough upside momentum, we could see a retest of 7013.50. This is a potential trigger point for an acceleration to the upside.

A sustained move under 6867.75 will signal the presence of sellers. However, taking out yesterday’s low at 6854.25 could trigger an acceleration to the downside with the first target coming in at 6775.75 to 6760.50. Watch for a technical bounce on the first test of this area.

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