E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 6397.75 Will Determine Direction This Week

March E-mini NASDAQ-100 Index futures closed sharply lower last week after confirming the previous week’s potentially bearish closing price reversal top. However, the sell-off took the index into its first retracement zone objective. This zone is considered a value area by some investors. Since the main trend is up, buyers may come in on another test of this retracement zone.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 6545.75 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 6250.00 will change the main trend to down.

The short-term range is 6250.00 to 6545.75. Its retracement zone is 6397.75 to 6363.00. This zone is support this week. If it fails to hold then look for an eventual move into 6250.00.

The main range is 5776.00 to 6545.75. Its retracement zone is the next downside target at 6160.75 to 6067.75.

Weekly Technical Forecast

Based on last week’s close at 6408.75 and last week’s price action, the direction of the index this week is likely to be determined by trader reaction to the short-term 50% level at 6397.75.

A sustained move over 6397.75 will indicate the presence of buyers. Overtaking a steep uptrending Gann angle at 6421.75 will indicate the buying is getting stronger. This could generate the upside momentum needed to retest 6545.75.

A sustained move under 6397.75 will signal the presence of sellers. This could lead to a test of the next uptrending Gann angle at 6384.00. This angle stopped the selling at 6250.00, the week-ending December 8.

If 6384.00 fails then look for a further break into the short-term Fibonacci level at 6363.00. If this level fails then look for an acceleration to the downside with 6250.00 the next likely target.

The key number to watch this week is 6397.75.