E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – RT Zone at 7510.50 to 7382.50 Controlling Direction
September E-mini NASDAQ-100 Index futures are trading higher at the mid-session on Tuesday, but there has been very little upside action since the dramatic pre-market reversal to the upside. The day session has the market trading inside a key retracement zone that served as support most of the session on Monday. This zone is controlling the near-term direction of the index.
At 16:37 GMT, September E-mini NASDAQ-100 Index futures are trading 7460.50, up 75.25 or +1.04%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, today’s price action indicates a shift in momentum may be taking place. This could lead to the formation of a closing price reversal bottom.
The main trend will change to up on a trade through 8051.75. This is unlikely over the near-term, but there is room for a normal 50% to 61.8% counter-trend retracement.
A trade through 7224.50 will signal a resumption of the downtrend with 6969.00 the next major target.
The main range is 6969.00 to 8051.75. The index is currently trading inside its retracement zone at 7510.50 to 7382.50. This zone is controlling the near-term direction of the index.
The short-term range is 8051.75 to 7224.50. Its retracement zone at 7638.25 to 7735.75 is the next potential upside target.
Daily Technical Forecast
Based on the early price action and the current price at 7460.50, the direction of the September E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the steep downtrending Gann angle at 7475.75.
A sustained move over 7475.75 will indicate the presence of buyers. The first target is the 50% level at 7510.50. This level is a potential trigger point for an acceleration to the upside with the next target the short-term retracement zone at 7638.25 to 7735.75. Since the trend is down, sellers are likely to come in on a test of this zone.
A sustained move under 7475.75 will signal the presence of sellers. This could lead to a test of the Fibonacci level at 7382.50. If this fails then look for the selling to extend into the uptrending Gann angle at 7329.00.
A break through 7329.00 will indicate that sellers have returned. If this creates enough downside momentum then look for the selling to extend into the intraday low at 7224.50.
The last two support angles before the 6969.00 main bottom come in at 7149.00 and 7059.00.