E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 23, 2017 Forecast
September E-mini NASDAQ-100 Index futures are trading slightly lower shortly before the cash market opening. On Thursday, the index formed a potentially bearish closing price reversal top. This indicates the selling is greater than the buying at current price levels.
The closing price reversal top will be confirmed on a break down under yesterday’s low at 5770.75. This could lead to the start of a 2 to 3 day break.
Technical Analysis
The main trend is up according to the daily swing chart. It turned up on Thursday when buyers took out 5789.00.
A trade through 5814.50 will negate the closing price reversal top and signal a resumption of the uptrend.
The short-term range is 5907.50 to 5641.25. Its retracement zone is 5774.25 to 5805.75. The market is currently trading inside this zone.
The main range is 5557.00 to 5907.50. Its retracement zone is 5732.25 to 5690.75. The index straddled this zone for about two weeks before moving higher this week.
Forecast
Based on the current price at 5781.75 and the earlier price action, the direction of the NASDAQ Index today is likely to be determined by trader reaction to the short-term 50% level at 5774.25.
Holding above 5774.25 will signal the presence of buyers. This could drive the market into the Fib level at 5805.75, followed by yesterday’s high at 5814.50 and the downtrending angle at 5827.50.
Overtaking the steep uptrending angle at 5833.25 will indicate the buying is getting stronger. This could lead to a test of the next downtrending angle at 5867.50. This is the last potential resistance angle before the 5907.50 main top.
A sustained move under 5774.25 will indicate the presence of sellers. This could trigger a break into the uptrending angle at 5737.25 followed by the 50% level at 5732.25.
The daily chart opens up to the downside under 5732.25 with the next target a support cluster at 5690.75 to 5689.25.
Watch the price action and read the order flow at 5774.25 all session. Trader reaction to this level will tell us if the buying is getting stronger, or if sellers are regaining control.
This article was originally posted on FX Empire
