E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Next Major Support 7577.75 to 7506.50 Retracement Zone
Technology stocks are under pressure again on Tuesday as renewed concerns over U.S.-China trade relations are encouraging investors to pare positions while officials decide their next moves. U.S. officials expect to raise tariffs on Chinese imports on Friday. Meanwhile, Chinese officials are expected to be in Washington at the same time to discuss trade matters.
At the mid-session, June E-mini NASDAQ-100 Index futures are trading 7676.25, down 126.75 or -1.63%.
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Chipmakers are leading the tech sector lower. The VanEck Vectors Semiconductor ETF (SMH) declined by 2.5% as KLA-Tencor dropped 6.7%. Applied Materials and NXP Semiconductors fell more than 3.5% each.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 7879.50 will signal a resumption of the uptrend. The index isn’t close to changing the main trend to down, but there is plenty of room to the downside for a normal correction. The trend will change to down on a trade through 7276.00.
The minor trend is down. This is move shifted momentum to the downside. The minor trend changes to up on a trade through 7872.50.
The main range is 7276.00 to 7879.50. Its retracement zone at 7577.75 to 7506.50 is the primary downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.
Daily Technical Forecast
The index is drifting lower on Tuesday. If this continues the rest of the session, then look for a test of the uptrending Gann angle at 7622.50. Watch for a technical bounce on the first test of this angle. If it fails then look for the selling to extend into the main 50% level at 7577.75.
If 7577.75 fails as support then look for the selling to possibly extend into the Fibonacci level/uptrending Gann angle support cluster at 7506.50 to 7500.00. Look for buyers to show up on a test of this area. If it fails as support then look for a steep plunge into the major 50% level at 7422.50.
On the upside, the resistance is bunched at 7724.00 and 7751.50. Overcoming this area will signal the return of buyers.