March E-mini NASDAQ-100 Index futures are trading slightly higher shortly after the cash market opening. The market is being underpinned by expectations of a 25 to 50 basis point rate cut by the Fed later this month. However, gains are being dampened by disappointment in the G7 finance ministers’ and central bank officials’ inability to reach a decision on coordinated rate cuts to stem the damage from the coronavirus.
At 14:42 GMT, March E-mini NASDAQ-100 Index futures are trading 8832.75, up 41.50 or +0.47%.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 8126.25 will signal a resumption of the downtrend. A move through 9763.00 will change the main trend to up.
The key support is a retracement zone at 8628.50 to 8360.75.
The first upside target zone is 8944.75 to 9137.75. Look for sellers on the first test of this retracement zone.
Daily Technical Forecast
Based on the early price action and the current price at 8832.75, the direction of the March E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to the steep downtrending Gann angle at 7839.00.
A sustained move over 7839.00 will indicate the presence of buyers. This could lead to a test of 8944.75 to 9137.75. Since the main trend is down, look for sellers on the first test of this zone.
A sustained move under 7839.00 could trigger a retest of the main retracement zone at 8628.50 to 8360.65.
This article was originally posted on FX Empire
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