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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 18, 2017 Forecast

December E-mini NASDAQ-100 Index futures are trading higher on Wednesday on the back of stronger-than-expected earnings from IBM. Investors are also optimistic about U.S. tax reform.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the index is still in the window of time for a potentially bearish closing price reversal top. Since there isn’t any true resistance at current price levels, I believe when this rally does end, the closing price reversal top will be the best sign that the selling is greater than the buying at current price levels.

Currently, the main range is 5842.00 to 6131.50. Since there haven’t been any swings since September 25, the retracement zone and primary downside target is 5986.75 to 5952.50.

Daily Forecast

Based on the current price action, the direction of the index today is likely to be determined by trader reaction to the steep uptrending angle at 6114.00.

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This Gann angle has been guiding the index higher since bottom at 5842.00 on September 25. It is moving up at a rate of 16 points per day.

Holding above 6114.00 will indicate the presence of buyers.

Falling below 6114.00 won’t change the trend to down, but it could be the first sign of a shift in momentum. If a break below this angle gains traction then lookout to the downside.

The daily chart indicates there is plenty of room to the downside with the primary target the retracement zone at 5986.75 to 5952.50. An uptrending Gann angle passes through this zone at 5978.00, making it a valid downside target also.

Basically, look for an upside bias on a sustained move over 6114.00 and for an intraday downside bias to develop on a sustained move under this angle.

Falling below yesterday’s close at 6123.75 will be the earliest sign of weakness.

This article was originally posted on FX Empire

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