Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Must Hold Steep Gann Angle to Sustain Momentum
March E-mini NASDAQ-100 Index futures surged to a record high on Thursday. The catalyst behind the rally was a stronger-than-expected private sector jobs report. ADP and Moody’s Analytics reported before the opening bell that the U.S. private sector added 250,000 jobs in December, more than the 190,000 estimate.
The main trend is up according to the daily swing chart. It was reaffirmed on Wednesday when buyers took out the previous top at 6545.75. This price is new support. Falling back below this level will be a sign of weakness. It will also indicate that this week’s buying was fueled by buy stops and short-covering.
Despite the strong upside momentum, the index is still vulnerable to a potentially bearish closing price reversal top. This chart pattern will not change the trend to down, but it will indicate the selling is greater than the buying at current price levels. Yesterday’s close at 6584.50 is the key number to watch into the close for this pattern to form.
E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Currently Moving Up Gann Angle at Rate of 64 Points Per Day
Additional support is a long-term uptrending Gann angle at 6383.25. This angle is a possible trigger point for an acceleration to the downside.
If momentum begins to shift to the downside and the long-term angle fails as support then look for the selling to possibly extend into another short-term, steep uptrending Gann angle at 6479.25 today.
Basically, bullish traders want to continue to see a pattern of higher highs and higher lowers. The upside momentum is going to continue as long as investors are willing to buy strength. If they feel that stocks are too expensive then we’ll get a short-term correction into a value zone.
This article was originally posted on FX Empire
