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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 8799.25 to Sustain Upside Bias

James Hyerczyk

March E-mini NASDAQ-100 Index futures are trading higher at the mid-session on Tuesday as technology investors diverge from the S&P 500 and Dow Jones Industrial Average, which are trading lower for the session.  The price action suggests investors are a little tentative about playing the long side of the market as they wait to see if the situation between the United States and Iran will escalate with a potential retaliation from Iranian forces.

At 16:05 GMT, March E-mini NASDAQ-100 Index futures are at 8881.25, up 33.50 or +0.38%.

Helping the tech-heavy NASDAQ futures outperform on Tuesday was Micron Technology Inc., which rose 3.4% after Cowen & Co. upgraded the chipmaker to “outperform” on an earlier-than-expected recovery in the memory market.

Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8907.25 will signal a resumption of the uptrend. The main trend will change to down on a trade through 8189.25. Taking out 8907.25 will make 8723.00 a new main bottom.

The minor trend is also up. A trade through 8723.00 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 8691.25 to 8907.25. Its 50% level at 8799.25 is support. It is controlling the direction of the index on Monday.

The second minor range is 8319.50 to 8907.25. Its 50% level at 8613.25 is another support level target.

The main range is 8189.25 to 8907.25. Its retracement zone at 8548.25 to 8463.50 is an important value zone.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 index on Tuesday is likely to be determined by trader reaction to the pivot at 8799.25.

Bullish Scenario

A sustained move over 8799.25 will indicate the presence of buyers. The next upside targets are a series of downtrending Gann angles at 8891.25, 8875.25 and 8843.25. The latter is the last potential resistance angle before the 8907.25 main top.

Crossing to the strong side of the uptrending Gann angle at 8925.25 will put the index in an extremely bullish position.

Bearish Scenario

A sustained move under 8799.25 will signal the presence of sellers. Crossing to the weak side of a steep downtrending Gann angle at 8779.25 will put the index in a bearish position. This could lead to a test of 8723.00 and 8691.25.

If these two levels fail then look for the selling to possibly extend into the 50% level at 8613.25.

This article was originally posted on FX Empire