E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Momentum Turns Lower Under 7310.25

June E-mini NASDAQ-100 Index futures are inching higher on Monday shortly before the cash market opening after recovering from an early session break. The early weakness was fueled by lower markets in Asia and concerns over the rapid rise of the number of coronavirus cases in the U.S. over the weekend.

At 09:27 GMT, June E-mini NASDAQ-100 Index futures are trading 7606.25, up 37.75 or +0.50%.

Traders are also reacting to lower crude oil prices and President Donald Trump’s order of national social distancing guidelines to April 30.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may be getting ready to shift to the downside.

A trade through 7893.50 will signal a resumption of the uptrend. The main trend will change to down on a move through the last swing bottom at 6628.75.

The minor trend is also up. A trade through 7310.25 will change the minor trend to down. This will also shift momentum to the downside.

On the upside, the first resistance is a retracement zone at 7817.75 to 8098.50. This zone stopped the rally at 7893.50 on Thursday. The second resistance area is a retracement zone at 8304.75 to 8653.00.

The short-term range is 6628.75 to 7893.50. Its retracement zone at 7261.00 to 7111.75 is the first downside target.

Daily Technical Forecast

The key area to watch is a price cluster at 7268.75 to 7261.00.

Bullish Scenario

A sustained move over 7268.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into a series of potential resistance levels at 7790.75, 7817.75 and 7893.50.

Taking out 7893.50 could trigger an even stronger rally into 8052.75 and 8098.50.

Bearish Scenario

A sustained move under 7261.00 will signal the presence of sellers. This could trigger a break into the short-term Fibonacci level at 7111.75. If this fails then look for the selling to possibly extend into a pair of uptrending Gann angles at 6948.75 and 6788.75.

Side Notes

Be careful shorting at 7261.00 to 7111.75. Aggressive buyers could step in in an effort to form a secondary higher bottom.