E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Testing Major Retracement Zone

E-mini NASDAQ-100 Index futures are trading higher early Tuesday after closing lower for a third straight session on Monday. There has been no follow-through to the downside and the index is currently sitting inside a major trading range.

At 0626 GMT, September E-mini NASDAQ-100 Index futures are trading 7218.25, up 17.75 or +0.25%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7166.75 will signal a resumption of the downtrend. The daily chart indicates there is plenty of room to the downside with 6956.00 the next potential downside target.

The main range is 6956.00 to 7530.00. Its retracement zone at 7243.00 to 7175.25 is currently being tested. This zone is controlling the longer-term direction of the index.

The short-term range is 7530.00 to 7166.75. If the market can find support inside the main retracement zone then we could see a really back to the short-term retracement zone at 7348.50 to 7391.25.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7243.00 and yesterday’s low at 7166.75.

Breaking out over 7243.00 and sustaining the move will indicate the return of buyers. If this move creates enough upside momentum then we could see a rally back to 7348.50 to 7391.25.

Crossing to the weak side of the Fibonacci level at 7175.25 and taking out yesterday’s low at 7166.75 will signal that the selling pressure is getting stronger. This could lead to an acceleration to the downside.

The daily chart indicates there is plenty of room to break under 7166.75. The next major target is the June 28 bottom at 6956.00.

Basically, look for an upside bias to develop on a sustained move over 7243.00 and for the downside bias to continue on a sustained move under 7166.75.