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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Be Setting Up Closing Price Reversal Top

James Hyerczyk

June E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening on Monday. The market moved to the minus side after giving up all of its earlier gains amid jitters about reopening the economy too soon.

U.S. traders were spooked late during the Asian session after South Korea and other countries that appeared passed the worst of the coronavirus announced jumps in new infections.

At 11:35 GMT, June E-mini NASDAQ-100 Index futures are trading 9180.75, down 37.50 or -0.41%.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was confirmed earlier in the session when buyers took out Friday’s high. The next major upside target is the February 20 main top at 9780.50. The main trend will change to down on a trade through the last swing bottom at 8556.25.

The nearest support is the December 31, 2019 close at 8770.75.

The main range is 9780.50 to 6628.75. Its retracement zone at 8576.50 to 8204.50 is the major support. This zone is controlling the longer-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 9180.75, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at 9218.25.

Bullish Scenario

A sustained move over 9218.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a retest of the intraday high at 9285.00. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 9218.25 will signal the presence of sellers. This will put the index in a position to post a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction or at least a 50% correction of the rally from 8556.25.

This article was originally posted on FX Empire