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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 29, 2018 Forecast

By:
James Hyerczyk
Published: Oct 29, 2018, 13:55 UTC

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to the minor pivot at 6954.75.

E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. The market is also following through to the upside following Friday’s near closing price reversal bottom. The price action suggests a shift in momentum to the upside may be taking place. This could lead to a test of a short-term retracement zone early in the session.

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. A trade through 6734.25 will signal a resumption of the downtrend. This could lead to a test of the May 3 bottom at 6590.50 and the April 25 bottom at 6493.00. A trade through 7368.50 will change the main trend to up.

The minor trend is also down. Today’s early price action makes 6734.25 a new minor bottom. A trade through 7175.00 will change the minor trend to up. This will also shift momentum to the upside.

The first minor range is 7175.00 to 6734.25. Its 50% level or pivot at 6954.75 is controlling the intraday direction of the index.

The short-term range is 7368.50 to 6734.25. The next target is the retracement zone at 7051.50 to 7126.25.

The main range is 7728.75 to 6734.25. Its retracement zone at 7231.50 to 7349.00 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to the minor pivot at 6954.75.

Bullish Scenario

A sustained move over 6954.75 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into a retracement zone at 7051.50 to 7126.25. Inside this zone is a steep downtrending Gann angle at 7088.75, making it a valid upside target.

Since the main trend is down, look for sellers on the first test of 7051.50 to 7126.25.

Overtaking 7126.25 could trigger an acceleration to the upside with targets coming in at 7175.00 and 7231.50.

Bearish Scenario

A sustained move under 6954.50 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the major 50% level at 6822.75. If this fails then look for the selling to extend into a long-term uptrending Gann angle at 6744.25. This angle stopped the selling on Friday.

If 6744.25 then 6734.25 fail as support then look for a potential acceleration into 6609.00 to 6590.50.

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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