E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weekly Chart Indicates Bullish Over 6710.00, Bearish Under 6605.50

March E-mini NASDAQ-100 Index futures closed higher last week, outperforming the E-mini S&P 500 Index and the E-mini Dow Jones Industrial Average.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. The move was fueled by the closing price reversal top chart pattern from the week-ending February 2. A trade through 7047.25 will negate the chart pattern and signal a resumption of the uptrend.

The market has formed a new minor bottom at 6164.00. It is also trading above a short-term retracement zone which means momentum has shifted to the upside.

The main range is 5589.25 to 7047.25. Its retracement zone at 6318.25 to 6146.25 stopped the recent sell-off into 6164.00.

The intermediate range is 5776.00 to 7047.25. Its retracement zone at 6411.50 to 6261.50 is new support.

The short-term range is 7047.25 to 6164.00. The market is currently trading on the strong side of its retracement zone at 6605.50 to 6710.00, making it new support and helping to fuel an upside bias.

Weekly Technical Forecast

Based on Friday’s close at 6786.75, the direction of the index this week is likely to be determined by trader reaction to the short-term Fibonacci level at 6710.00.

A sustained move over 6710.00 will signal the presence of buyers. Overtaking last week’s high at 6859.75 will indicate the buying is getting stronger. This could generate the upside momentum needed to challenge the main top at 7047.25.

A sustained move under 6710.00 will indicate the presence of sellers. This could trigger a move into the 50% level at 6605.50. This price is a potential trigger point for an acceleration into a series of retracement levels at 6411.50, 6318.25 and 6261.50.

The final targets are the minor bottom at 6164.00 and the major Fibonacci level at 6146.25.

Watch the price action and read the order flow at 6710.00 all week. Trader reaction to this level will tell us if the buying is getting stronger, or if the sellers are retaking control.