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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 24, 2018 Forecast

By:
James Hyerczyk
Published: Sep 24, 2018, 14:19 UTC

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the long-term uptrending Gann angle at 7505.50.

E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. Investors are repositioning themselves following China’s cancellation of trade talks between the United States and China, and ahead of the Fed’s widely expected interest rate hike and monetary policy statement on Wednesday.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has shifted to the downside following Friday’s closing price reversal top and today’s subsequent confirmation of the chart pattern.

A trade through 2637.50 will negate the closing price reversal bottom and signal a resumption of the uptrend. A trade through 7422.25 will change the main trend to down. A trade through 7420.50 will reaffirm the change in trend.

The short-term range is 7422.25 to 7637.50. Its 50% level or pivot is 7529.75. This level is controlling the near-term direction of the index.

The intermediate range is 7723.50 to 7420.50. Its retracement zone at 7572.00 to 7607.75 is resistance.

The main range is 7193.50 to 7723.50. Its retracement zone at 7458.50 to 7396.00 is the primary downside target. This zone is major support. It stopped the rally earlier this month at 7422.25 and 7420.50. Buyers could come in on the first test of this area.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the long-term uptrending Gann angle at 7505.50.

A sustained move under 7505.50 will signal the presence of sellers. This could trigger a break into the 50% level at 7458.50. Watch for a technical bounce on the first test of this level.

If 7458.50 fails as support then look for the selling to possibly extend into 7422.25, 7420.50 and the Fibonacci level at 7396.00.

A sustained move over 7505.50 will indicate the presence of buyers. Overtaking the short-term pivot at 7529.75 will indicate the buying is getting stronger. This could trigger a retest of the 50% level at 7572.00, followed by a downtrending Gann angle at 7595.50 and the Fibonacci level at 7607.75.

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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