E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trying to Establish Support at 7422.50 to 7314.75

Based on the today’s price action and the current price at 7462.25, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the long-term uptrending Gann angle at 7447.50.
James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading higher late Tuesday, but inside the previous session’s range. This typically indicates investor indecision and impending volatility. It could also be an indication of a developing shift in investor sentiment as they try to build a new higher bottom amid an easing of tensions over U.S.-China trade relations.

At 19:21 GMT, June E-mini NASDAQ-100 Index futures are trading 7462.25, up 70.25 or +0.97%.

The catalyst behind Tuesday’s rally is the news that the U.S. temporarily eased restrictions on Chinese telecom giant Huawei. Chipmakers that suffered steep losses on Monday are recovering nicely with Micron Technology, Qualcomm and Xilinx all posting gains of at least 2%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 7290.00 will change the main trend to down. A move through the minor tops at 7641.00 and 7654.50 will indicate the return of buyers.

The retracement zone support is 7422.50 to 7314.75. This zone held last week as investors established a new main bottom at 7290.00. On Monday, buyers made another higher low at 7361.50. Today, the intraday low is 7400.75.

The short-term range is 7879.50 to 7290.00. Its retracement zone at 7584.75 to 7654.25 remains the primary upside target. This zone stopped the rally last week at 7641.00.

The retracement zone at 7584.75 to 7654.25 is critical to the near-term structure of the market. Aggressive sellers are trying to establish a new secondary lower top, while buyers are trying to drive the market through this zone. They are going to try to create a new higher bottom at 7290.00.

Daily Technical Forecast

Based on the today’s price action and the current price at 7462.25, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the long-term uptrending Gann angle at 7447.50.

Bullish Scenario

A sustained move over 7447.50 will indicate the presence of buyers. They’re going to have to create a huge wave of volatility, however, in order to reach potential upside targets at 7584.75 to 7591.50.

Bearish Scenario

A sustained move under 7447.50 late in the session will signal the presence of sellers. The first target is the major 50% level at 7422.50.

Look for downside pressure to build late in the session if sellers can sustain a break under 7422.50.

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