E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – No Resistance, but Closing Price Reversal Top Will Stop Rally Temporarily

With the index closing at an all-time high, there is no resistance so the emphasis will shift to the chart pattern. If buyers take out 7414.25 then trader reaction to last week’s close at 7393.00 will determine the direction of the index this week.
James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index futures closed at an all-time high last week led by strong performances in bellwether stocks such as Amazon and Apple, both of which are in a battle to reach a trillion dollars in value.

Traders shrugged off worries over the increasing trade tensions between the United States and China. Mostly because technology hasn’t really been affected by the tariffs. Tech stock earnings and revenue weren’t factors either last week. Essentially, strong demand for risky assets drove the price action.

September E-mini NASDAQ-100 Index futures settled the week at 7393.00, up 159.50 or +2.21%.

Weekly September E-mini NASDAQ-100 Index

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. The uptrend resumed after buyers drove the index through the closing price reversal and minor top at 7358.50. There is no imminent threat to the main uptrend at current price levels. However, we will continue to watch for signs of selling pressure including another closing price reversal top.

The minor trend is also up. A trade under 6956.00 will change the minor trend to down and shift momentum to the downside.

The new short-term range is 6339.00 to 7414.25. Its retracement zone is 6876.50 to 6749.75. If the minor trend changes to down then this zone will become the primary downside target. This zone will move up if 7414.25 is taken out.

Weekly Technical Forecast

With the index closing at an all-time high, there is no resistance so the emphasis will shift to the chart pattern. If buyers take out 7414.25 then trader reaction to last week’s close at 7393.00 will determine the direction of the index this week.

On the downside, the first target is a long-term uptrending Gann angle at 7309.50. This is followed by a steeper short-term uptrending Gann angle at 7235.00. Since the main trend is up, buyers are likely to come in on a test of these levels.

We could see an acceleration to the downside if 7235.00 fails to hold. The weekly chart is wide open under this angle with 6956.00 the next major target.

Basically, the index is going to have to close over 7393.00 this week to continue the strong upside bias.

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