E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens into Close Under 50% Level at 7584.75

Based on the early price action and the current price at 6565.50, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the short-term 50% level at 7584.75.
James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market close. The market is also posting an inside move which typically indicates investor indecision and impending volatility.

The index is likely being supported by stronger than expected U.S. consumer sentiment. However, gains are likely being limited by worries over retaliation by China for a U.S. move against Hauwei. U.S. technology companies that are being prevented with the Chinese phone company are already feeling pressure. Analysts say the Chinese government may also take action against Apple and Qualcomm.

At 18:48 GMT, June E-mini NASDAQ-100 Index futures are trading 6565.50, down 34.75 or -0.45%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the 7879.50 main top on April 25. A trade through 7290.00 will change the main trend to down. A move through 7879.50 will signal a resumption of the uptrend.

The minor trend is down. A trade through 7654.50 will change the minor trend to up. This will also shift momentum to the upside.

The main support zone is 7422.50 to 7314.75. This zone essentially stopped the selling pressure at 7290.00 on May 14.

The short-term range is 7879.50 to 7290.00. Its retracement zone at 7584.75 to 7654.25 is the first upside target. This zone, along with a downtrending Gann angle at 7623.00 stopped the selling on Thursday and earlier today.

The short-term retracement zone is very important to the structure of the chart pattern. Aggressive sellers are going to try to form a secondary lower top on a test of this zone. If successful, they may try to drive the index back into the main retracement zone.

Daily Technical Forecast

Based on the early price action and the current price at 6565.50, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the short-term 50% level at 7584.75.

Bullish Scenario

A sustained move over 7584.75 will indicate the presence of buyers. If successful, this could lead to a retest of the downtrending Gann angle at 7623.00. Overtaking this angle, will indicate the buying is getting stronger. This could create the momentum needed to challenge the minor top and Fibonacci level at 7654.50.

Look for sellers on the first test of 7654.50. However, prepare for an acceleration to the upside if buyers can take out this level. The next target is a resistance cluster at 7751.50.

Bearish Scenario

A sustained move under 7584.75 will signal the presence of sellers. If they create enough downside momentum then look for the selling to extend into an uptrending Gann angle at 7482.00. We could see a technical bounce on the first test of 7482.00. However, if it fails then look for an acceleration into the major retracement zone at 7422.50 to 7314.75. This is the last support zone before the 7290.00 main bottom.

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
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