E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 6867.75, Weakens Under 6760.50

The price action in the weekly June E-mini NASDAQ-100 Index futures market was pretty impressive last week when compared to the June E-mini S&P 500 Index and the June E-mini Dow Jones Industrial Average charts. It showed strong buying interest which we know was primarily fueled by a surge in shares of Apple on Friday.

For the week, the June E-mini NASDAQ-100 Index settled at 6774.75, up 105.00 or +1.57%.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum is in a position to shift to the upside with the formation of the secondary higher bottom at 6306.75 and the higher minor bottom at 6429.25.

Momentum will officially shift to the upside when the minor top at 6867.00 is taken out.

The major support is a long-term retracement zone at 6283.00 to 6063.50.

The main range is 7214.50 to 6306.75. Its retracement zone is 6760.50 to 6867.75. This zone is currently being tested. It is controlling the near-term direction of the market.

The short-term range is 6306.75 to 6867.00. Its 50% level or pivot at 6586.75 is new support. It was tested successfully last week and the week before.

Weekly Swing Chart Technical Forecast

Based on Monday’s trade, the direction of the index this week is likely to be determined by trader reaction to the 50% level at 6760.50.

A sustained move over 6760.50 will indicate the presence of buyers. This could create the upside momentum needed to challenge the minor top at 6867.00 and the Fibonacci level at 6867.75. This is a key weekly resistance cluster.

Taking out 6867.75 with conviction will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the contract high at 7214.50 the next major upside target.

The inability to take out 6867.75 will signal the return of sellers, however, don’t expect an acceleration to the downside unless 6760.50 is taken out with conviction.

The daily chart opens up under 6760.50 with 6586.75 the next likely downside target. This target is also a trigger point for a further acceleration to the downside.

Basically, look for a bullish tone to develop this week on a sustained move over 6867.75 and for a bearish tone to develop on a sustained move under 6760.50.