E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Ready to Test Important Retracement Zone at 7638.25 to 7735.75

Based on yesterday’s close at 7553.25, the direction of the September E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to the main 50% level at 7510.25. If you prefer to trade the trend and short strength instead of weakness then you’ll get your shot on a test of 7638.25 to 7735.75.
James Hyerczyk
E-mini NASDAQ-100 Index

September E-mini NASDAQ-100 Index futures finished higher for a second session on Wednesday after confirming the previous day’s closing price reversal bottom. The price action suggests that the major investors may have already priced in the negative headlines and are now shopping for value amongst the beaten up individual shares. Furthermore, conditions have calmed somewhat in the global bond markets after a plunge in yields on Wednesday created a bit of a panic sell in the stock market during the pre-market session.

On Wednesday, September E-mini NASDAQ-100 Index futures settled at 7553.25, up 37.75 or +0.50%.

Daily September E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher following the August 6 closing price reversal bottom at 7224.50 and its subsequent confirmation on Wednesday.

A trade through 7224.50 will negate the closing price reversal bottom and signal a resumption of the downtrend with the main bottom at 6969.00 the next target.

The main trend will change to up on a trade through 8051.75. This is highly unlikely today, but there is room for a normal 50% to 61.8% retracement zone of the current break. Traders will first have to overcome this zone in order to be in a position to challenge the all-time high at 8051.75.

The main range is 6969.00 to 8051.75. Its retracement zone at 7510.25 to 7382.50 is controlling the near-term direction of the index. The market is currently trading on the strong side of this zone, giving it a slight upside bias.

The short-term range is 8051.75 to 7224.50. If the upside momentum continues then look for a test of its retracement zone at 7638.25 to 7735.75.

Daily Swing Chart Technical Forecast

Based on yesterday’s close at 7553.25, the direction of the September E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to the main 50% level at 7510.25.

Bullish Scenario

A sustained move over 7510.25 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the short-term retracement zone at 7638.25 to 7735.75.

Since the main trend is down then look for sellers to come in on a test of 7638.25 to 7735.75. They are going to try to form a secondary lower top. If they are successful then look for another break with sellers trying to takeout 7224.50 in an effort to resume the downtrend.

On the upside, overtaking and sustaining a rally over 7735.75 will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under 7510.25 will signal the presence of sellers. If this move creates enough downside momentum then look for sellers to drive the index into the main Fibonacci level at 7382.50. This is a potential trigger point for an acceleration into 7224.50. If this bottom is taken out then look for the selling to extend into the next main bottom at 6969.00.


If you prefer to trade the trend and short strength instead of weakness then you’ll get your shot on a test of 7638.25 to 7735.75.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.