E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7432.00, Weakens Under 7369.25
Technology stocks were hit hard last week with the chipmaker sector leading the market lower. Steep losses in Amazon and Apple also contributed to the weakness. Worries about a prolonged trade dispute with China helped fuel the selling pressure. Fear of higher interest rates was also a contributor to the decline. Investors were also questioning valuation as some stocks got a little pricing.
For the week, September E-mini NASDAQ-100 Index futures settled at 7438.50, down 222.75 or -2.91%.
Weekly Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 7697.50 will reaffirm the uptrend. The main trend will change to down on a trade through 7166.75.
The minor trend is also up. It will change to down on a trade through 7316.50.
The short-term range is 7166.75 to 7697.00. Its retracement zone at 7432.00 to 7369.25 was the first downside target. It was tested last week.
The main range is 6339.00 to 7697.00. If the trend changes to down then the index is likely to drop into its retracement zone at 7018.00 to 6857.75. Even in a downtrend, buyers could step in because this looks like a long-term value area.
Weekly Swing Chart Technical Forecast
Based on last week’s close at .7438.50 and the price action, the direction of the September E-mini NASDAQ-100 Index this week is likely to be determined by trader reaction to the 50% level at 7432.00.
A sustained move over 7431.75 will indicate the presence of buyers. If this picks up additional buyers then look for a minimum move to 7545.00. We could see sellers on the first test of this level, but if it fails then buyers may take another run at 7697.00.
A sustained move under 7431.75 will signal the presence of sellers. The first support is the Fib level at 7369.25.
The Fib level at 7369.25 is a potential trigger point for a break into 7316.50. Taking out this level could lead to an even steeper break into the main bottom at 7166.57.
Basically, look for an upside bias on a sustained move over 7432.00. Look for a downside bias to develop on a sustained move under 7369.25.
This article was originally posted on FX Empire
