E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weekly Chart Indicates Next Upside Target 7022.25

Technology stocks are trading higher this week on the back of strong earnings from Apple, AMD and Facebook. Tech stocks are being further boosted by the dovish U.S. Federal Reserve, which left interest rates unchanged on Wednesday. The move was highly expected, but the central bank also preached the importance of “patience” in its decision to raise rates throughout the year. Later this week, traders will get the opportunity to react to an earnings report from Amazon.

At 05:04 GMT, March E-mini NASDAQ-100 Index futures are trading 6871.50, up 34.25 or +0.50%.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 5820.50 the week-ending December 28.

The main trend will change to up on a trade through 7169.00. A move through 5820.50 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The index is up 5 weeks from its last main bottom. Typically, we start looking for a potentially bearish closing price reversal top after 7 to 10 weeks.

The main range is 7765.00 to 5820.50. The index is currently trading inside its retracement zone at 6792.75 to 7022.25. This zone is controlling the longer-term direction of the index.

Weekly Technical Forecast

Based on this week’s price action and the current price at 6871.50, the direction of the March E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the main 50% level at 6792.75.

Bullish Scenario

A sustained move over 6792.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into the main Fibonacci level at 7022.25.

Overcoming 7022.25 will indicate the buying is getting stronger with the next target angle coming in at 7100.50. Crossing to the strong side of this angle will put the index in a bullish position with the next targets coming in at 7169.00 and 7221.00.

Bearish Scenario

A failure to hold above 6792.75 and a sustained move below this level will signal the return of sellers. This could drive the index into a downtrending Gann angle at 6677.00. Crossing to the weak side of this angle will put the index in a bearish position with the next target angle coming in at 6460.50.