Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 7506.50 Last Major Support Before 7422.50
June E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. The early selling pressure is being fueled by renewed concerns over U.S.-China trade relations. Trade talks are expected begin today between the United States and China. Instead of reaching a trade deal, China’s negotiators are expected to try to stop the U.S. form imposing increased tariffs on Friday.
Investors are taking protection against the worst news by trimming positions and seeking shelter in safe-haven assets like the U.S. Dollar, Japanese Yen and U.S. Treasurys.
At 14:36 GMT, June E-mini NASDAQ-100 Index futures are trading 7533.00, down 114.50 or -1.49%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. The current acceleration to the downside is being fueled by sell-stops getting hit under a series of minor bottoms.
The index is in no position to change the main trend to up, but due to the prolonged move down in terms of price and time, it is in the window of time for a closing price reversal bottom. If this occurs then expect it to be done in dramatic fashion.
The main range is 7276.00 to 7879.50. Its retracement zone at 7577.75 to 7506.50 is currently being tested. This zone is controlling the near-term direction of the index.
The next major retracement zone is 7422.50 to 7314.75. This zone is controlling the longer-term direction of the index.
Buyers could come in on a test of these retracement zones.
Daily Technical Forecast
Based on the early price action, the direction of the June E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the downtrending Gann angle at 7559.50.
Bullish Scenario
Overtaking and sustaining a move over 7559.50 will indicate the presence of buyers. This could trigger a quick move into the 50% level at 7577.75. This is the trigger point for an acceleration to the upside with the next target an uptrending Gann angle at 7655.00, followed by a downtrending Gann angle at 7719.50.
Overcoming yesterday’s close at 7642.50 will turn the market higher for the session. This will put the index in a position to post a potentially bullish closing price reversal bottom.
Bearish Scenario
A sustained move under 7559.50 will signal the presence of sellers. The next targets are an uptrending Gann angle at 7516.00 and the Fibonacci level at 7506.50.
The Fib level at 7506.50 has to hold or the index could collapse to 7422.50.
This article was originally posted on FX Empire
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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 7506.50 Last Major Support Before 7422.50
