E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Set Up for Potentially Bearish Closing Price Reversal Top

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to yesterday’s close at 7515.00.
James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading slightly higher before the mid-session, but the index has given back nearly all of its earlier gains after rallying to just under the May 16 top at 7641.00.

The selling pressure has put the index in a position to post a closing price reversal top. If formed and confirmed, we could see a 2 to 3 day correction.

At 19:10 GMT, June E-mini NASDAQ-100 Index futures are trading 7520.25, up 4.75 or +0.07%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7641.00 will change the main trend to up. If this move creates enough upside momentum we could see an eventual test of 7879.50.

A close under 7515.50 will form a potentially bearish closing price reversal top.

The main range is 7879.50 to 6941.25. Its retracement zone at 7521.00 to 7410.25 is controlling the near-term direction of the index. Consider this zone support.

The short-term range is 7641.00 to 6941.25. Its retracement zone at 7373.75 to 7291.00 is additional support.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to yesterday’s close at 7515.00.

Bullish Scenario

A sustained move over 7515.00 will indicate the presence of buyers. Overtaking 7521.00 will indicate the buying is getting stronger. If this move creates enough upside momentum, we could see a drive into 7600.75, followed by a downtrending Gann angle at 7631.50.

Overtaking 7631.50 could lead to a test of 7641.00. Taking out this level will change the main trend to up. This could trigger a surge into the next downtrending Gann angle at 7751.50.

Bearish Scenario

A sustained move under 7515.00 will signal the presence of sellers. Taking out the downtrending Gann angle at 7505.00 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the 50% level at 7410.25 the next likely target.

Overview

Watch 7515.00 the rest of the session. The market is in danger of forming a closing price reversal top.

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