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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 13880.00, Weakens Under 13786.00

By:
James Hyerczyk
Published: Apr 28, 2021, 16:58 UTC

The direction of the June E-mini NASDAQ-100 into the close is likely to be determined by trader reaction to the 50% level at 13880.00.

E-mini NASDAQ-100 Index

In this article:

June E-mini NASDAQ-100 Index futures are edging lower at the mid-session as traders awaited the release of the Federal Reserve’s monetary policy statement, due to be released at 18:00 GMT. Investors are hoping the Fed will stick to its promise of keeping monetary policy loose.

At 16:38 GMT, June E-mini NASDAQ-100 Index futures are trading 13909.25, down 43.75 or -0.31%.

A surge in shares of Alphabet following strong earnings bolstered the NASDAQ Index earlier in the session before sellers took control. Google-parent Alphabet Inc jumped 5.4% on reporting a record profit for the second consecutive quarter and announcing a $50 billion share buyback.

After the close, Facebook Inc is expected to report a rise in first-quarter revenue, while Apple Inc is expected to post a more than 32% jump in second-quarter revenue. Shares of Facebook rose 1.4%, while Apple dipped 0.2%.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 14059.50 will signal a resumption of the uptrend. A move through 13700.50 will change the main trend to down.

The minor trend is also up. The new minor top is 14050.

The first minor range is 14059.50 to 13700.50. The index is currently testing its 50% level at 13880.00.

The second minor range is 13512.50 to 14059.50. Its 50% level at 13786.00 is potential support.

The short-term range is 12609.75 to 14059.50. If the main trend changes to down then its retracement zone at 13334.50 to 13163.50 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 into the close is likely to be determined by trader reaction to the 50% level at 13880.00.

Bullish Scenario

A sustained move over 13880.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible break out through the minor top at 14050.00, followed by the main top at 14059.50. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 13880.00 will signal the presence of sellers. This could trigger a quick move into 13786.00. Watch for a technical bounce on the first test of this level. If it fails then look for the selling to possibly extend into the main bottom at 13700.50.

Not only will the trend change to down on a trade through 13700.50, but we could see an acceleration to the downside with 13334.50 to 13163.50 the next potential downside target zone.

For a look at all of today’s economic events, check out our economic calendar.

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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