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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 15, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading lower early Friday in response to weaker markets in Asia. Keeping a lid on prices are concerns over the ongoing U.S. – China trade talks and signs of a slowdown in the U.S. economy. Additionally, sellers are also reacting to weaker Chinese inflation data for January which missed trader expectations.

At 06:04 GMT, March E-mini NASDAQ-100 Index futures are trading 6988.50, down 31.25 or -0.45%.

Daily March E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside with the formation of a closing price reversal top at 7069.75 on February 13 and the subsequent confirmation of the chart pattern on Thursday.

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A trade through 7069.75 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 6841.00.

The index is currently trading inside a major retracement zone at 6792.75 to 7022.25. This zone is controlling the near-term direction of the market.

The short-term range is 6841.00 to 7069.75. Its retracement zone at 6955.25 to 6928.25 is the next downside target. Since the main trend is up, look for buyers to show up on the first test of this area.

Daily March E-mini NASDAQ-100 Index (Close-Up)
Daily March E-mini NASDAQ-100 Index (Close-Up)

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index is likely to be determined by trader reaction to a short-term uptrending Gann angle at 7001.00.

Bullish Scenario

A sustained move over 7001.00 will indicate the presence of buyers. The next upside target is the major Fibonacci level at 7022.25. Taking out this level will indicate the buying is getting stronger. This could lead to a test of the minor top at 7069.75. A move through this top will signal a resumption of the uptrend.

Bearish Scenario

A sustained move under 7001.00 will signal the presence of sellers. If this move creates enough downside momentum then look for a break into the 50% level at 6955.25. If it fails then look for the selling to extend into the Fibonacci level at 6928.25, followed closely by the uptrending Gann angle at 6921.00.

The angle at 6921.00 is the trigger point for an acceleration to the downside with the next target angle coming in at 6881.00. This is the last potential support angle before the major uptrending Gann angle at 6864.25 and the main bottom at 6841.00.

Weekly Closing Price Reversal Top

A close under 6916.75 will form a weekly closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 week correction.

This article was originally posted on FX Empire

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