E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trading on Strong Side of Major Retracement Zone at 7022.25 to 6792.75

Based on Tuesday’s price action, the direction of the March E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the former main top at 7211.50.
James Hyerczyk
E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures finished higher on Tuesday, led by another strong performance in Apple. Shares of the communications giant rose more than 1 percent.

On Monday, the stock posted gains of more than 3 percent after Bank of America Merrill Lynch upgraded the stock to buy from neutral. Bank of America analysts noted the company’s recent pullback presents “opportunity.” The bank also raised its 12-month price target to $210 per share from $180.00.

At 22:00 GMT, March E-mini NASDAQ-100 Index futures are trading 7205.25, down 1.25 or -0.02%.

Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up when buyers took out the previous main top at 7211.50 on Tuesday. The new main bottom is 6939.00. A trade through this level will change the main trend to down.

The main range is 7765.00 to 5820.50. Its 50% to 61.8% retracement zone is 7022.25 to 6792.75. This zone is support. Holding above this zone is helping to generate a strong upside bias. The area is controlling the longer-term direction of the index.

Daily Technical Forecast

Based on Tuesday’s price action, the direction of the March E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the former main top at 7211.50.

Bullish Scenario

A sustained move over 7211.50 will indicate the presence of buyers. If this generates enough upside momentum then look for a rally into the November 8 main top at 7262.00. Taking out this top will reaffirm the uptrend with the downtrending Gann angle at 7322.75 the next upside target.

Sellers could show up on the first test of 7322.75, but taking it out could trigger an acceleration into the October 17 main top at 7403.75.

Bearish Scenario

A sustained move under 7211.50 will signal the return of sellers. It will also indicate that Tuesday’s rally was likely fueled by short-covering and buy stops rather than aggressive buying. The first minor target is a 50% level at 7081.

If 7081.00 fails as support then look for the selling to possibly extend into the long-term Fibonacci level at 7022.25. This level is major support so look for buyers to show up on a test of this level. If it fails then the uptrend could be challenged.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US