Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weekly Chart Shows Index Vulnerable Under 7369.25.
September E-mini NASDAQ-100 Index futures finished higher last week, erased most of those gains on Monday. The index is currently testing a short-term retracement zone on the weekly chart that could determine the direction of the market the rest of week.
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Weekly Technical Analysis
The main trend is up according to the weekly swing chart. A trade through 7697.00 will signal a resumption of the uptrend after three weeks of sideways-to-lower trading. The main trend will change to down on a move through 7166.75.
The minor trend is also up. A trade through 7316.50 will change the minor trend to down. This will also signal a shift in momentum to the downside.
The short-term range is 7166.75 to 7697.00. The market is currently testing its retracement zone at 7431.75 to 7369.25. This zone is controlling the near-term direction of the index. Buyers may be trying to form a secondary higher bottom. Sellers are trying to drive the market through this zone in an effort to make 7697.00 a new main top.
The main range is 6339.00 to 7697.00. If the trend changes to down then its retracement zone at 7018.00 to 6857.75 will become the primary downside target.
Weekly Technical Forecast
Based on Monday’s price action, the direction of the September E-mini NASDAQ-100 Index the rest of the week is likely to be determined by trader reaction to the uptrending Gann angle at 7327.75.
A sustained move over 7327.75 will indicate the presence of buyers. Overtaking 7432.00 will indicate the buying is getting stronger. This could trigger an acceleration into a steep uptrending Gann angle at .7614.75. Overtaking this Gann angle will put the index in a bullish position with 7697.00 the next major upside target.
A sustained move under 7327.75 will signal the presence of sellers. The first downside target is 7369.25. This price is a potential trigger point for an acceleration to the downside with the first target the minor bottom at 7316.50.
Taking out 7316.50 will signal a shift in momentum to down. This could lead to a further break into the main bottom at 7166.75.
The bottom at 7166.75 is another trigger point for a steep sell-off. This could lead to a test of the major support angle at 7107.00, and the major 50% level at 7018.00.
This article was originally posted on FX Empire
