Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 9174.50 Sets Tone
March E-mini NASDAQ-100 Index futures hit a new record high on Friday before closing higher for the session. The index was helped by Google-parent Alphabet, which rose 1%, extending gains after it became the fourth U.S. company to top a market value of more than $1 trillion on Thursday.
The technology index was also supported by optimism over corporate earnings, economic data and indications of resilience in a Chinese economy battered by a prolonged trade war with the United States.
On Friday, March E-mini NASDAQ-100 Index futures settled at 9174.50, up 41.00 or +0.45%. Earlier in the session, it hit a new all-time high at 9189.25.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 9189.25 will signal a resumption of the uptrend. The main trend will change to down on a trade through 8678.00.
A change in trend is highly unlikely, but Monday will mark the eighth session up from the last main bottom, putting the index in a position to post a potentially bearish closing price reversal top. This won’t change the main trend to down, but it will signal that the selling is greater than the buying at current price levels. If confirmed, it could trigger the start of a 2 to 3 day break, or at least a 50% correction of the last rally.
The minor trend is also up. A trade through 9023.00 will change the minor trend to down. This will also shift momentum to the downside.
The minor range is 9023.00 to 9189.25. Its 50% level at 9106.00 is minor support.
The short-term range is 8678.00 to 9189.25. Its 50% to 61.8% retracement zone at 8933.50 to 8873.25 is the first downside target.
The main range is 8189.25 to 9189.25. Its 50% level at 8689.25 is a major support level.
Daily Swing Chart Technical Forecast
Given the prolonged move up in terms of price and time, the direction of the March E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to Friday’s close at 9174.50.
Bullish Scenario
A sustained move over 9174.50 will indicate the presence of buyers. Taking out last week’s high at 9189.25 will indicate the buying is getting stronger.
Bearish Scenario
A sustained move under 9174.50 will signal the presence of sellers. Taking out Friday’s low at 9130.00 will indicate the selling pressure is getting stronger. This could trigger a break into the minor pivot at 9106.00. Buyers could come in on the first test of this level. If it fails, then look for the selling to possibly extend into the minor bottom at 9023.00.
Closing Price Reversal Top
Taking out 9189.25 then closing below 9174.50 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction with the next target the short-term 50% level at 8933.50.
This article was originally posted on FX Empire
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