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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7581.00, Weakens Under 7545.00

By:
James Hyerczyk
Published: Sep 14, 2018, 06:37 UTC

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the short-term Fibonacci level at 7581.00.

E-mini NASDAQ-100 Index

Technology shares are inching higher early Friday. The market is following-through to the upside following a surge the previous session. Weaker-than-expected U.S. Consumer Inflation helped create drive yesterday’s momentum. A recovery in the microchip sector also helped drive the market higher as well as a rebound in shares of Apple after a setback the previous session.

At 0616 GMT, September E-mini NASDAQ-100 Index futures are trading 7581.25, up 16.75 or +0.22%.

E-mini NASDAQ-100 Index
Daily September E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7697.00 will signal a resumption of the uptrend. A move through 7393.00 will change the main trend to down. This is followed by the next main bottom at 7316.50.

The main range is 7166.75 to 7697.00. Its retracement zone at 7431.75 to 7369.25 is major support. The recent main bottom at 7393.00 fell inside this zone.

The short-term range is 7697.00 to 7393.00. Its retracement zone at 7545.00 to 7581.00 is the primary upside target. This zone is currently being tested. This zone is controlling the near-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the short-term Fibonacci level at 7581.00.

A sustained move over 7581.00 will signal the presence of buyers. The daily chart indicates there is plenty of room to the upside. So if the move starts to attract buyers, we could see a surge into the minor top at 7693.75, followed by the main top at 7697.00.

A sustained move under 7581.75 will indicate the presence of sellers. This could trigger a quick move into the 50% level at 7545.00.

The daily chart indicates there is plenty of room to the downside under 7545.00. If this move gains traction, we could even see an acceleration to the downside with the first target 7431.75, followed by the main bottom at 7393.00 and the Fib level at 7369.25.

Basically, look for an upside bias to develop on a sustained move over 7581.00, and a downside bias to develop on a sustained move under 7545.00.

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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