E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trading Inside Weekly Retracement Zone at 6792.75 to 7022.25

The main trend is down according to the weekly swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom the week-ending December 28. A trade through 7169.00 will change the main trend to up.
James Hyerczyk
Weekly E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures are trading lower early Monday. Investors are reacting to the mixed to lower trade in Asia. Traders are watching out for developments on the U.S.-China trade situation, as negotiations are set to continue in Beijing later this week after mainland Chinese markets were closed last week due to the Lunar New Year holidays.

At 03:21 GMT, March E-mini NASDAQ-100 Index futures are trading at 6906.50, down 10.25 or -0.15%.

Weekly March E-mini NASDAQ-100 Index

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom the week-ending December 28. A trade through 7169.00 will change the main trend to up. A move through 5820.50 will signal a resumption of the downtrend.

This week is the seventh week up from the last main bottom, which puts the index inside the window of time for a potentially bearish closing price reversal top. This could trigger the start of a 2 to 3 week correction.

The main range is 7765.00 to 5820.50. Its retracement zone at .6792.75 to 7022.25 is controlling the near-term direction of the market. Currently, the index is trading inside this zone.

Weekly Technical Forecast

The index is currently sitting in the middle of the 6792.75 to 7022.25 retracement zone.

Bullish Scenario

If buyers take control then look for a potential rally into the Fibonacci level at 7022.25, followed closely by last week’s high at 7038.75. Taking out this level could trigger a surge into the downtrending Gann angle at 7157.00. This is followed closely by the main top at 7169.00.

Taking out 7169.00 will change the main trend to up. This could trigger an acceleration to the upside with the next target angle coming in at 7461.00.

Bearish Scenario

If sellers take change then look for break into the main 50% level at 6792.75. This is followed closely by a steep uptrending Gann angle at 6716.50. Since the main trend is up, look for buyers on the first test of this angle.

Look for an acceleration to the downside if 6716.50 fails as support. This could trigger a break into another downtrending Gann angle at 6549.00. This is followed by an uptrending Gann angle at 6268.50.

Please let us know what you think in the comments below. 

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