June E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening, hitting its daily limit early in the session, after rebounding from a brutal coronavirus-driven selloff on signs that Washington was nearing a deal on a $2 trillion economic rescue package.
Traders said the central bank’s measures and expectations of a government stimulus package appeared to be easing some pressure on a market that has seen one of the biggest routs in history.
At 14:04 GMT, June E-mini NASDAQ-100 Index futures are at 7330.00, up 345.50 or +4.95%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 7629.00 will change the main trend to up.
Momentum is trending higher. It shifted to the upside earlier in the day when buyers confirmed yesterday’s closing price reversal bottom. A trade through 6628.75 will negate the chart pattern and signal a resumption of the downtrend.
The minor range is 7629.00 to 6628.75. Its 50% level or pivot at 7128.75 is controlling the direction of the market today.
The short-term range is 9006.75 to 6628.75. Its retracement zone at 7817.75 to 8098.50 is the primary upside target. Since the trend is down, sellers could come in on a test of this zone.
Daily Technical Forecast
Based on the early price action and the current price at 7330.00, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Tuesday will likely be determined by trader reaction to the pivot at 7128.75.
A sustained move over 7128.75 will indicate the presence of buyers. It will also put the index on the bullish side of a pair of steep downtrending Gann angles.
The first upside target is 7629.00. Taking out this level will change the main trend to up. This could trigger a move into the 50% level at 7817.75, followed by a downtrending Gann angle at 8046.75 and a short-term Fibonacci level at 8098.50.
A sustained move under 7128.75 will signal the presence of sellers. Crossing to the weak side of the downtrending angle at 7086.75 will indicate the selling is getting stronger. This could lead to a test of another steep downtrending Gann angle at 6836.50.
A failure at 6836.50 will likely lead to a test of 6628.75. And if this level fails as support then look out the downside.
This article was originally posted on FX Empire
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