E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 6688.00 to Sustain Rally
March E-mini NASDAQ-100 Index futures rallied to a new record high earlier in the session before turning lower. This early price action suggests the selling may be greater than the buying at current price levels. It could also be a signal that a closing price reversal top may be forming.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out yesterday’s high.
Based on the prolonged move up in terms of price and time, traders should start watching for a potentially bearish closing price reversal top. A close below 6688.00 will form this chart pattern.
The short-term range is 6383.25 to 6705.75. Its 50% level is 6544.50. If there is a reversal top then 6544.50 will become the primary downside target.
Daily Technical Forecast
Based on the early price action today, the direction of the NASDAQ-100 Index is likely to be determined by trader reaction to yesterday’s close at 6688.00.
A sustained move over 6688.50 will indicate the presence of buyers. If the buying is strong enough, we could challenge today’s intraday high.
A sustained move under 6688.00 will signal the presence of sellers. If the selling volume increases then look for a possible acceleration to the downside with the first target coming in at 6618.50. This is followed by a steep uptrending Gann angle at 6575.25 and a 50% level at 6544.50.
This article was originally posted on FX Empire