E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 6537.75 is Key Resistance Cluster
March E-mini NASDAQ-100 Index futures are trading sharply higher, up about 99.25 or 1.55% at the mid-session. The rally started early in the session when sellers failed to follow-through to the downside after last week’s sell-off and buyers saw value at a key 50% level and in front of last week’s low.
The main trend is up according to the daily swing chart. Momentum shifted back to the upside earlier today when the index crossed to the strong side of a short-term retracement zone.
A trade through 6545.75 will signal a resumption of the uptrend.
The major retracement zone at 6397.75 to 6393.00 was the primary downside target of last week’s sell-off. Friday’s low hit 6383.25, inside the zone. Today’s rally started following a successful test of its upper or 50% level at 6397.75.
The short-term range is 6545.75 to 6383.25. Its retracement zone is 6464.50 to 6483.75. Crossing to the strong side of this zone today shifted momentum to the upside. This zone is new support.
Based on the current price at 6508.00, the direction of the index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 6513.75.
Overtaking 6513.75 will signal the presence of buyers. This could create enough upside momentum to challenge the next downtrending Gann angle at 6529.75.
The key area today is the potential resistance cluster at 6537.75. This area is the last potential resistance angle before the 6545.75 main top. A sustained move over this cluster will put the index in an extremely bullish position.
A failure to overcome and sustain a rally over 6513.75 will indicate the presence of sellers. This could trigger a break into a potential support cluster at 6483.75 to 6481.75.
If 6481.75 fails then look for the move to extend into 6464.50. This is the trigger point for an acceleration to the downside.
This article was originally posted on FX Empire
