E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 20, 2019 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 the 50% level at 7422.50 and the uptrending Gann angle at 7431.75.
James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading sharply lower shortly after the cash market opening on Monday. The selling is being fueled by escalating fallout from a U.S. crackdown on Huawei pressured the technology sector.

The selling pressure intensified overnight after Alphabet’s Google suspended business with Huawei that involves transferring hardware, software and other technical services. Bloomberg News also reported that companies like Intel, Qualcomm and Broadcom will not supply Huawei until further notice.

Chipmaker stocks also fell broadly, led by shares of Nvidia, Advanced Micro Devices and Lam Research. Apple was also a big loser, shedding more than 3%.

At 14:05 GMT, June E-mini NASDAQ-100 Index futures are trading 7390.00, down 121.50 or -1.59%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7290.00 will change the main trend to down. A move through 7641.00 will signal a resumption of the uptrend.

On the upside, retracement zone resistance comes in at 7584.75 to 7654.25. On the downside, the key retracement zone is 7422.50 to 7314.75. This zone is currently being tested. Based on last week’s price action, this zone is controlling the near-term direction of the market.

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 the 50% level at 7422.50 and the uptrending Gann angle at 7431.75.

Bearish Scenario

A sustained move under 7422.50 will indicate the presence of sellers. If this generates enough downside momentum then look for the selling to extend into the downtrending Gann angle at 7335.50, followed by the main Fibonacci level at 7314.75 and the main bottom at 7290.00.

Taking out 7290.00 will change the trend to down and could trigger an acceleration to the downside with the next major target coming in at 7035.00.

Bullish Scenario

Overcoming and sustaining a rally over 7431.75 will signal the return of buyers. This is a potential trigger point for an acceleration to the upside with potential targets coming in at 7584.75 and 7607.50.

Overview

If a secondary lower top forms at 7641.00 then look out to the downside. This could trigger a steep break into 7051.50 to 7035.00.

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