E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 16, 2018 Forecast

December E-mini NASDAQ-100 Index futures are trading higher shortly after the opening on Tuesday. The rally is being fueled by strong earnings reports from earlier in the session. After the bell, Netflix will release its numbers. This could produce some volatility late in the session and on Wednesday.

At 1430 GMT, the index is trading 7153.50, up 77.00 or +1.09%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, the index appears to be setting up for a strong counter-trend rally. A trade through 6907.75 will signal a resumption of the downtrend.

The minor trend is also down. The minor trend will change to up on a move through 7455.75. This move will also shift momentum to the upside.

Support is the long-term retracement zone at 7057.00 to 6898.50. Last week’s low at 6907.75 occurred inside this zone.

The short-term range is 7728.75 to 6907.75. Its retracement zone at 7318.25 to 7415.25 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the December NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the 50% level at 7057.00.

A sustained move over 7057.00 will indicate the presence of buyers. If this move generates enough upside momentum then look for a potential rally into the 50% level at 7318.25 over the near-term. This is followed closely by a steep downtrending Gann angle at 7376.75.

A sustained move under 7057.00 will signal the presence of sellers. The first target angle comes in at 7376.75. Crossing to the weak side of this angle will put the index in a bearish position with potential targets coming in at 6907.75 and 6898.50.