E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Testing Key Weekly Resistance Zone at 6792.75 to 7022.25

March E-mini NASDAQ-100 Index futures finished higher last week. Early in the week, the rally was driven by shares of Netflix after the company announced it was raising subscription fees. This bullish news spread to other FAANG stocks – Facebook, Apple, Amazon and Google. Late in the week, hope that a new trade deal would be reached between the United States and China helped attract speculative buyers. The move was fueled by the news that the two economic powerhouses may have offered concessions to end the on-going trade dispute.

Last week, March E-mini NASDAQ-100 Index futures settled at 6792.75, up 180.00 or +2.65%.

Weekly Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at 5820.50 the week-ending December 28.

The main trend will change to up on a trade through 7169.00. A move through 5820.50 will signal a resumption of the downtrend.

The main range is 7765.00 to 5820.50. Last week, the index tested its retracement zone at 6792.75 to 7022.25. This zone is controlling the near-term direction of the index.

The short-term range is 7169.00 to 5820.50. Holding above its retracement zone at 6653.75 to 6494.75 is helping to generate the upside bias. This zone is support.

Weekly Technical Forecast

Based on last week’s close at 6792.75, the direction of the March E-mini NASDAQ-100 Index is likely to be determined by the main 50% level at 6792.75.

Bullish Scenario

A sustained move over 6792.75 will indicate the presence of buyers. If this move can generate enough upside momentum then look for buyers to make a run at a steep uptrending Gann angle at 6844.50. Overtaking this angle will put the index in a bullish position with the main Fibonacci level at 7022.25 the next major upside target.

Bearish Scenario

A sustained move under 6792.75 will signal the presence of sellers. The first target is the steep downtrending Gann angle at 6741.00. Crossing to the weak side of this angle will put the index in a bearish position. This could trigger a further break into the short-term retracement zone at 6653.75 to 6494.75.