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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Hovering Near Record High into Close

James Hyerczyk

March E-mini NASDAQ-100 Index futures hit an all-time high early in the session on Monday then the buying dried up. Sellers didn’t actually come in per se, but the market just stopped moving higher and became rangebound on an intraday basis.

The technology index was supported by shares of Apple, which rose 1.5% after Wedbush’s Dan Ives – the tech giant’s biggest bull on Wall Street – raised his price target to $350 a share, 25% higher than where the stock currently trades.

At 21:08 GMT, March E-mini NASDAQ-100 Index futures are trading 8725.50, up 14.75 or +0.17%.

Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out Friday’s high at 8724.75.

A move through 8724.75 will indicate the intraday buying is getting stronger. The main trend will change to down on a move through the last swing bottom at 8189.25.

The prolonged move up in terms of price and time puts the index inside the window of time for a potentially bearish closing reversal top. This could lead to a 2 to 3 day counter-trend break.

The minor trend is also up. A trade through 8319.50 will change the minor trend to down. This will also shift momentum to the downside.

Daily Technical Forecast

The key level to watch into the close on Monday is 8710.75. Trader reaction to this level will tell us if the bulls or the bears are in control.

Bullish Scenario

A sustained move over 8710.75 will indicate the presence of buyers. If this is able to create enough momentum into the close then look for the rally to possibly extend into the intraday high at 8743.25.

Bearish Scenario

A sustained move under 8710.75 will signal the presence of sellers. This will also put the index in a position to form a closing price reversal top.

Taking out Friday’s low at 8665.25 will indicate the selling is getting stronger. This could trigger a further break into a steep uptrending Gann angle at 8637.25.

Side Notes

The Gann angle at 8637.25 on Monday has been guiding the market higher since the 8189.25 main bottom on December 3. This uptrending angle, moving at a rate of 32 points per day, is also acting like a trend indicator.

It could continue to act like support, but if it fails, we could see the start of a steep plunge.

This article was originally posted on FX Empire