E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 31, 2018 Forecast

December E-mini NASDAQ-100 Index futures are trading sharply higher shortly after the cash market opening. The rally is impressive, however, it still has to overcome a number of potential retracement levels before we can say the trend has changed back to up. The first step in the rallying process is to drive out the short-sellers.

At 1331 GMT, the December E-mini NASDAQ-100 Index is trading 6941.50, up 126.25 or +1.84%.

Daily Technical Analysis

The main trend is down according to the daily swing. A trade through 6580.50 will signal a resumption of the downtrend. A move through 7368.50 will change the main trend to up.

The minor trend is also down. A trade through 6991.50 will change the minor trend to up. This will also shift momentum to the upside. The next target is the minor top at 7175.00.

The price action is also being controlled by a number of retracement zones.

On the downside, the best support zone is a retracement zone at 6822.75 to 6609.00. This zone provided support on Monday.

The minor range is 7175.00 to 6580.50. Its 50% level or pivot is 6877.75.

The intermediate range is 7368.50 to 6580.50. Its retracement zone at 6974.50 to 7067.50 is the first target zone.

The main range is 7728.75 to 6580.50. Its retracement zone at 7154.75 to 7290.25 is the second target zone.

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 major 50% level at 6822.75. This level provided support earlier in the session.

A sustained move over 6822.75 will indicate the presence of buyers. The first target is the minor pivot at 6877.75. Overcoming this level could create the upside momentum needed to challenge the intermediate 50% level at 6974.50. Overcoming this level will indicate the buying is getting stronger.

Taking out 6991.50 will change the minor trend to up. This could trigger an acceleration into a steep downtrending Gann angle at 7024.75, followed by the Fibonacci level at 7067.50.

A sustained move under 6822.75 will signal the presence of sellers. This could trigger a quick break into an uptrending Gann angle at 6755.00.

If 6755.00 fails as support then look for a potential acceleration into a cluster of levels at 6609.00, 6590.50 and 6580.50.