E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 1, 2018 Forecast
December E-mini NASDAQ-100 Index futures are trading sharply higher on Monday with shares of Apple and Amazon contributing the most to its strong performance. The news that Canada has joined the U.S. and Mexico in a trilateral trade agreement is the catalyst behind today’s bullish tone.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 7723.50 will signal a resumption of the uptrend. At this point, all you’re going to have to worry about is a closing price reversal top.
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The closest main bottom is 7422.25. The minor trend is also up. The closest minor bottom comes in at 7473.75.
Daily Technical Forecast
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to a steep uptrending Gann angle at 7710.25.
A sustained move over 7710.25 will indicate the presence of buyers. If this creates enough upside momentum then look for a breakout over the main top at 7723.50. The daily chart is wide open over this level so don’t be surprised by an acceleration to the upside.
A sustained move under 7710.25 will signal the presence of sellers. Essentially, the index is vulnerable under this level. The chart indicates there is room to the downside with 7566.25 the next major target, however, the index won’t fall to this level until we start to see topping action.
Basically, the buying is strong enough to continue to hug an uptrending Gann angle moving at a rate of 32 points per day since the 7422.25 main bottom on September 18. Crossing to the strong side of this angle, however, will put the index in a bullish position.