E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 20, 2014 Forecast

Friday’s strong close gives the December E-mini NASDAQ-100 Index an early upside bias today. After reaching a bottom on October 16 at 3684.00, slightly above the major Fibonacci level at 3680.50, buyers proceeded to drive the index above the major 50% level at 3764.25 and the downtrending Gann angle from the contract high at 4118.75 at 3950.75.

Today’s trading session begins with the daily chart showing plenty of room to the upside before the next potential resistance level comes in. The main range is 4118.75 to 3684.00. The first upside target is the 50% level of this range at 3901.50. This is 97.50 points from Friday’s close.

The next key level is a resistance cluster formed by the downtrending angle at 3950.75 and the Fibonacci level at 3952.68.

Look for a weak session if sellers drive this market back under the steep downtrending angle at 3782.75. Taking out the major 50% level at 3764.25 will indicate the selling is getting stronger. The next targets under 3764.25 are the minor bottom at 3684.00 and the Fib number at 3680.50.

The tone of the market will be determined by trader reaction to the angle at 3782.75. Traders may straddle this level several times before a direction is finally established.