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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Looking for Acceleration to Upside Through 7470.75

James Hyerczyk

June E-mini NASDAQ-100 Index futures are trading higher as we approach the cash market close. The technology-based index has been strong most of the session on the back of tech bellwethers Netflix and Facebook which rose 9% and 7.6% respectively. Amazon is up 5.3%. Microsoft is trading 7.37% higher and Apple is 3.09% higher.

At 19:24 GMT, June E-mini NASDAQ-100 Index futures are at 7429.75, up 224.25 or +3.11%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 6810.00 will signal a resumption of the downtrend. The main trend will change to up on a trade through the last main top at 9006.75.

I don’t expect to see a change in trend, but there is room for a normal 50% to 61.8% retracement. Or even a weekly closing price reversal bottom.

The short-term range is 9006.75 to 6810.00. Its retracement zone at 7958.50 to 8205.75 is the first upside target zone.

The main range is 9780.50 to 6810.00. Its retracement zone at 8295.25 to 8645.75 is the second upside target zone.

Combining the two zones creates a resistance cluster at 8205.75 to 8295.25.

Short-Term Outlook

Earlier today, buyers took out the first key downtrending Gann angle at 7220.50 and came in strong enough to rally into the next downtrending Gann angle at 7470.75.

The angle at 7470.75 has been guiding the index lower for 12 weeks. This angle is the potential trigger point for an acceleration to the upside with the next major target the short-term 50% level at 7958.50.

The next major move in the market hinges upon trader reaction to 7470.75. Taking it out and sustaining the move will indicate the buying is getting stronger.

A failure to take out 7470.75 will indicate that sellers are coming in to defend the trend. This could lead to a retest of the next downtrending Gann angle at 7220.50.

Crossing to the weak side of the angle at 7220.50 will indicate the selling is getting stronger. This could trigger a retest of the minor bottom at 6810.00.

Side Notes

The June E-mini NASDAQ-100 Index formed its first minor or 1-day swing bottom since March 2.

This article was originally posted on FX Empire