Technology shares are trading higher shortly after the cash market opening on Thursday. Stocks were boosted early in the session by a rise in U.S. Treasury yields which helped ease fears of a U.S. recession. Shortly before the cash market opening, the index was helped by a steady U.S. Gross Domestic Product report. There have been no new concrete developments between the U.S.-China, just a lot of speculation about retaliation.
At 13:38 GMT, June E-mini NASDAQ-100 Index futures are trading 7260.50, up 44.50 or +0.63%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 7183.25 will signal a resumption of the downtrend. The main trend will change to up on a trade through 7641.00. This is highly unlikely today. However, due to the prolonged move down in terms of price and time, the index is in the window of time for a potentially bullish closing price reversal bottom.
On the upside, the nearest resistance is the Fibonacci level at 7314.75. This is followed by the 50% level at 7422.75.
On the downside, the nearest support is a long-term Fibonacci level at 7035.00.
Daily Technical Forecast
If the early upside momentum continues then look for buyers to take a run at the Fib level at 7314.75. This is followed by a downtrending Gann angle at 7353.00. Since the main trend is down, look for sellers on the first test of this angle. Overtaking it, however, could trigger an acceleration into the 50% level at 7422.75.
If there is no follow-through to the upside then look for sellers to attack yesterday’s low at 7183.25. If successful then look for the selling to extend into the downtrending Gann angle at 7111.50. Crossing to the weak side of this angle will put the index in a bearish position.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Futures (GC) Technical Analysis – May 30, 2019 Forecast
- Crude Oil Price Update – Major 50% Level at $59.70 Stops Rally Ahead of EIA Report
- GBP/JPY Price Forecast – British pound finding support
- AUD/USD Price Forecast – Australian dollar sits at fair value
- Monthly Macro Outlook: The gloom deepens
- GBP/USD Price Forecast – British pound continues to look at the floor