E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 6799.25 to Sustain Upside Momentum

March E-mini NASDAQ-100 Index futures are trading higher at the mid-session after recovering from early session weakness. Oil prices also dipped and gold retreated from its nearly 7-year high as tensions eased a bit following Friday’s U.S. killing of Iran’s top general.

Big tech stocks led the tech-based index higher. Facebook and Amazon rose around 1% and Netflix and Google-parent Alphabet advanced 2.4% and 2.2%, respectively.

At 18:37 GMT, March E-mini NASDAQ-100 Index futures are at 8832.25, up 22.25 or +0.25%.

 Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending lower. Momentum shifted to the downside with the formation of a closing price reversal top on January 3 and its subsequent confirmation earlier today.

A trade through 8907.25 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend will change to down on a trade through 8189.25. This is highly unlikely at this time, but there is room for a 50% to 61.8% retracement.

A closing price reversal top does not signal a change in trend, but it does often lead to a 2 to 3 day counter-trend move.

The minor range is down. This move confirms the shift in momentum. A trade through 8907.25 will change the minor trend to up. A move through 8691.25 will indicate the selling is getting stronger.

The minor range is 8691.25 to 8907.25. Its 50% level or pivot at 8799.25 is controlling the direction of the index on Monday.

The second minor range is 8319.50 to 8907.25. Its 50% level at 8613.25 is the next potential downside target.

The main range is 8189.25 to 8907.25. Its retracement zone at 8548.25 to 8463.50 is the best downside target and value area. Buyers are likely to step in on a test of this area.

Daily Technical Forecast

Based on the early price action and the current price at 8832.25, the direction of the March E-mini NASDAQ-100 Index into the close on Monday is likely to be determined by trader reaction to the pivot at 8799.25.

Bullish Scenario

A sustained move over 8799.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into a series of downtrending Gann angles at 8843.25, 8875.25 and 8891.25.

Crossing to the strong side of an uptrending Gann angle at 8893.25 will put the index in a position to take out the main top at 8907.25.

Bearish Scenario

A sustained move under 8799.25 will signal the presence of sellers. This could lead to a retest of today’s low at 8723.00. This is followed by the minor bottom at 8691.25.

Look for an acceleration to the downside if 8691.25 fails as support. This could trigger a move into 8613.25. This is followed by a support cluster at 8548.25 to 8541.25.