E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 7410.50 – 7442.00 Will Set Today’s Tone

June E-mini NASDAQ-100 Index futures are trading higher in the pre-market session on Friday. The market is getting a boost from a positive performance in Asia. The catalysts behind the early strength are optimism over the resumption of U.S.-China trade negotiations and firmer U.S. Treasury yields which has dampened concerns over a future recession.

At 07:29 GMT, June E-mini NASDAQ-100 Index futures are trading 7378.50, up 26.50 or +0.36%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at 7544.75 on March 22.

A trade through 7276.00 will indicate the selling pressure is increasing. A move through 7544.75 will signal a resumption of the uptrend.

The minor trend is also down. This move supports the shift in momentum to the downside. A trade through 7276.00 will reaffirm the downtrend. A move through 7447.50 will change the minor trend to up and signal a shift in momentum to the upside.

The main range is 6965.75 to 7544.75. Its retracement zone at 7255.25 to 7187.00 is the primary downside target and potential support zone. Since the main trend is up, buyers are likely to come in on a test of this zone. They are going to try to form a secondary higher bottom.

The minor range is 7544.75 to 7276.00. Its retracement zone at 7410.50 to 7442.00 is the primary upside target. Counter-trend sellers could come in on a test of this zone. They are going to try to form a secondary lower top. Buyers are going to try to take out the Fibonacci level at 7442.00.

Daily Swing Chart Technical Forecast

Based on the early trade, buyers may try to take a run at 7410.50. If they can overcome this level then look for a test of 7442.00 then the minor top at 7447.50. This price is the trigger point for an acceleration to the upside with the next target the main top at 7544.75.

If sellers take control early and they create enough downside momentum then look for a possible retest of this week’s low at 7276.00, followed by the main 50% level at 7255.25. Buyers could come in on the first test of this level. If it fails then look for an acceleration into the Fibonacci level at 7187.00. This is the last support level. If sellers take this out then look for a potential acceleration to the downside with the next major target the Fibonacci level at 7033.75.