E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Rangebound Trade Indicates Investor Indecision, Impending Volatility

June E-mini NASDAQ-100 Index futures are trading nearly flat at the mid-session. The market is trading inside yesterday’s range which indicates investor indecision and impending volatility. The choppy price action suggests investors are being pulled in two directions. The bullish traders are optimistic over the renewed trade talks between the United States and China. Bearish investors are concerned about a potential recession.

At 16:00 GMT, June E-mini NASDAQ-100 Index futures are trading 7316.25, down 17.25 or -0.21%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 7544.75 on March 22.

The minor trend is down. This confirms the shift in momentum to down. A trade through 7276.00 will reaffirm the minor trend. A move through 7447.50 will change the minor trend to up.

The main range is 6965.75 to 7544.75. Its retracement zone at 7255.25 to 7187.00 is the primary downside target. Buyers could show up on a test of this area.

The short-term range is 7544.75 to 7276.00. Its retracement zone at 7410.50 to 7442.00 is the primary upside target. A test of this zone will determine whether the buying is strong enough to test 7544.75, or the selling is strong enough to form a secondary lower top.

Daily Technical Forecast

Based on the early price action and the current price at 7316.75, the direction of the June E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the downtrending Gann angle at 7288.75.

Bullish Scenario

Holding above 7288.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into a cluster of numbers at 7410.50, followed by a pair of Gann angles at 7413.75 and 7416.75. Look for sellers on the first test of 7410.50 to 7416.75.

Taking out 7416.75 will indicate the buying is getting stronger. This could lead to a test of a Fib level at 7442.00. This is a potential trigger point for a surge into a downtrending Gann angle at 7480.75.

Bearish Scenario

Taking out 7288.75 will signal the presence of sellers. This could lead to a test of 7276.00, followed by the main 50% level at 7255.25. This is a potential trigger point for an acceleration into 7189.75 to 7187.00.