E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7422.75, Weakens Under 7314.75

Based on Friday’s close at 7315.50, the direction of the June E-mini NASDAQ-100 Index over the short-run is likely to be determined by trader reaction to the short-term Fibonacci level at 7314.75.
James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures settled slightly higher on Friday, but the market struggled all session to gain its footing. Low pre-holiday volume had something to do with the weak, rangebound trade. Position-squaring ahead of Monday’s U.S. Memorial Day holiday also held the market in check.

Technology shares have taken a beating lately not only because of the escalating trade war between the United States and China, but also because there is now a technology war with the U.S. limiting business with China telecom giant Hauwei.

On Friday, June E-mini NASDAQ-100 Index futures settled at 7315.50, up 4.50 or +0.06%. The cash and futures markets are closed today although you may see some low volume activity on the electronic board. After you study my analysis, take the rest of the day off.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7268.00 will signal a resumption of the downtrend. The main trend will change to up on a move through 7641.00.

The minor range is 6965.75 to 7879.50. Its retracement zone at 7422.75 to 7314.75 is controlling the short-term direction of the index.

The main range is 5847.25 to 7879.50. If the selling pressure resumes this week then its retracement zone at 6863.25 to 6623.50 will become the primary downside target.

Daily Swing Chart Technical Forecast

Based on Friday’s close at 7315.50, the direction of the June E-mini NASDAQ-100 Index over the short-run is likely to be determined by trader reaction to the short-term Fibonacci level at 7314.75.

Bearish Scenario

A sustained move under 7314.75 will indicate the presence of sellers. The first target is last week’s low at 7268.00. This is a potential trigger point for an acceleration to the downside with the next major downside targets the main bottoms at 6965.75 and 6866.50, followed by the main 50% level at 6863.25.

Bullish Scenario

A sustained move over 7314.75 will signal the presence of buyers. This could spike prices into the short-term 50% level at 7422.75. This is a potential trigger point for an acceleration to the upside.

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