E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 13804.75 to Sustain Upside MomentumThe direction of the March E-mini NASDAQ-100 index futures contract is likely to be determined by trader reaction to Friday’s close at 13804.75.
March E-mini NASDAQ-100 Index futures are trading lower after giving back earlier gains in the extended trading session Monday evening following a strong finish late last week. The U.S. stock market was closed on Monday for Presidents Day.
Strategists cited a fall in the CBOE Volatility Index, widely viewed as Wall Street’s best fear gauge, for the recent optimism in the markets.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
“Fear is receding from the market,” Lee, a CNBC contributor, wrote of the move on Friday. “And receding fear is followed by systematic and quant funds adding ‘leverage’ – in other words, this is a set-up to see a rally.”
At 08:06 GMT, March E-mini NASDAQ-100 Index futures are trading 13867.50, down 4.50 or -0.03%. This is down from a high or 13900.50.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the previous session high.
A trade through 12727.25 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is vulnerable to a closing price reversal top. This chart pattern won’t change the trend to down, but it could trigger the start of a 2 to 3 day correction.
The minor trend is also up. A trade through 13516.75 will change the minor trend to down. This will also shift momentum to the downside.
Daily Swing Chart Technical Forecast
The direction of the March E-mini NASDAQ-100 index futures contract on Tuesday is likely to be determined by trader reaction to Friday’s close at 13804.75.
A sustained move over 13804.75 will indicate the presence of buyers. Taking out the intraday high at 13900.50 will indicate the buying is getting stronger. The rest is up to momentum that could trigger an acceleration to the upside.
A sustained move under 13804.75 will signal the presence of sellers. This could trigger a pullback into a pair of minor 50% levels at 13708.50 and 13622.75, followed by a minor bottom at 13516.75.
A close under 13804.75 will form a potentially bearish closing price reversal top. If this chart pattern is confirmed then look for the start of a 2 to 3 day correction.
For a look at all of today’s economic events, check out our economic calendar.