E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 13524.25, Strengthen Over 13655.00
June E-mini NASDAQ-100 Index futures are trading slightly higher early Wednesday after forming a potentially bearish closing price reversal top the previous session. The chart pattern does not signal a change in trend, but if confirmed, it could trigger the start of a 2 to 3 day correction.
Prices rose early in the session on Tuesday on renewed recovery hopes, but prices fell into the close as investors locked in profits following an impressive seven day rally.
At 10:51 GMT, June E-mini NASDAQ-100 Index futures are at 13579.50, up 9.50 or +0.07%.
Later today at 18:00 GMT, investors will get the opportunity to react to the latest Fed minutes. The Fed kept interest rates unchanged in March, but investors will be looking closely at the minutes for clues as to when the central bank might raise rates.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum may be getting ready to shift to the downside following the formation of the closing price reversal top.
A trade through 13655.00 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 13524.25 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day correction or a 50% correction of the current rally.
The main range is 13888.00 to 12200.00. Its retracement zone at 13243.00 to 13044.00 is controlling the near-term direction of the index. It is also expected to be strong support.
The minor range is 12609.75 to 13655.00. Its 50% level at 13132.25 is another potential target. It falls inside the main retracement zone.
Daily Swing Chart Technical Forecast
The direction of the June E-mini NASDAQ-100 Index is likely to be determined by trader reaction to 13589.75.
A sustained move over 13589.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 13655.
Taking out 13655 will negate the closing price reversal top. This could trigger an acceleration to the upside with the February 26 main top at 13888.00 the major target.
A sustained move under 13589.75 will signal the presence of sellers. Taking out 13524.25 will confirm the closing price reversal top. If this move creates enough downside momentum then look for the selling to possibly extend into 13243.00 to 13132.25 over the short-term.
For a look at all of today’s economic events, check out our economic calendar.