E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Short-Term Downside Target 6848.75 to 6728.50

Investors continued to exit U.S. technology stocks last week after posting a potentially bearish closing price reversal top on the weekly chart the previous week. The catalyst behind the selling pressure was the developing trade war between the United States and its trading partners, China and the European Union.

September E-mini NASDAQ-100 Index futures settled at 7066.75, down 156.00 or -2.16%. From December 31, 2017 to June 30, 2018, the index gained 608.75 or +9.43%.

Tech investors were especially influenced by the White House decision to restrict foreign investment in U.S. technology companies in an effort to protect U.S. intellectual property.

Weekly Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, last week’s confirmation of the previous week’s closing price reversal top shifted momentum to the downside.

A trade through 7358.50 will negate the closing price reversal top and signal a resumption of the uptrend.

The short-term range is 6339.00 to 7358.50. Its retracement zone at 6848.75 to 6728.50 is the first downside target. Since the main trend is up, buyers may come in on a test of this zone.

The main range is 5611.25 to 7358.50. Its retracement zone at 6484.75 to 6278.75 is controlling the longer-term direction of the index.

Weekly Swing Chart Technical Forecast

Based on last week’s price action and the close at 7066.75, the direction of the September E-mini NASDAQ-100 Index this week is likely to be determined by trader reaction to the uptrending Gann angle at 7275.25.

A sustained move under 7272.25 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to drive the index into the 50% level at 6848.75. Watch for a technical bounce on the first test of this level.

If 6848.75 fails as support then look for the selling to extend into an uptrending Gann angle at 6755.00. A test of this angle could also draw the attention of buyers.

If the angle at 6755.00 fails then look for the selling to extend into the Fibonacci level at 6728.50. Besides being potential support, this angle is also the trigger point for an acceleration into a series of levels at 7547.00, 6484.75 and 6443.25.

Overcoming and sustaining a rally over 7275.25 will indicate the return of buyers. This could create the momentum needed to challenge 7358.50. Taking out this price will create a new all-time high.