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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 17, 2018 Forecast

By:
James Hyerczyk
Published: Oct 17, 2018, 12:48 UTC

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 7344.75. Taking out 7318.25 with conviction will indicate the selling pressure is getting stronger. The daily chart is also wide open to the downside with the next target angle coming in at 7163.75. So be prepared for an acceleration to the downside.

E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Investors are giving back earlier gains. The cash market NASDAQ Composite is expected to open higher. It was closed when Netflix released its earnings after the bell on Tuesday so it has to price in the news.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The main trend changes to up on a trade through 7728.75. A trade through 6907.75 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 7455.75 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 7728.75 to 6907.75. Its retracement zone is 7318.25 to 7415.25. This zone is currently being tested. Trader reaction to this zone will determine the near-term direction of the market.

This retracement zone is critical to the chart structure. Since the main trend is down, short-sellers are likely to come in on a test of this zone. They are going to try to form a potentially bearish secondary lower top. Bullish counter-trend traders are going to drive the index through this zone.

Watch the price action and read the order flow inside the retracement zone. This will tell you if the bulls or the bears are in control.

On the downside, the major support and longer-term retracement zone comes in at 7057.00 to 6898.50.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 7344.75.

A sustained move under 7344.75 will indicate the presence of sellers. This should lead to a test of the 50% level at 7318.25.

Taking out 7318.25 with conviction will indicate the selling pressure is getting stronger. The daily chart is also wide open to the downside with the next target angle coming in at 7163.75. So be prepared for an acceleration to the downside.

A sustained move over 7344.75 will signal the presence of buyers. This could create the upside momentum needed to challenge the Fibonacci level at 7415.25. Look for sellers on the first test of this level.

Taking out 7415.25 will target the minor top at 7455.75. This is a potential trigger point for an acceleration into the next downtrending Gann angle at 7536.75.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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