E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Remains Bearish Below 8360.75
March E-mini NASDAQ-100 Index futures are attempting to recover after plunging earlier in the session and setting off two exchange circuit-breakers in the process. Investors seem to be paying close attention to the price action in the crude oil market.
Crude oil plummeted on the opening after Saudi Arabia announced measures to increase production and cut prices over the weekend. The news may have ignited a price war. Crude dropped over 30% but has since regained its opening price. The index fell sharply in reaction to the drop in crude oil prices, hitting two circuit breaks that halted trading. However, the recovery in crude oil has helped the E-mini NASDAQ-100 recover some of its earlier losses.
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At 14:19 GMT, March E-mini NASDAQ-100 Index futures are trading 8150.50, down 352.75 or -4.15%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The downtrend was reaffirmed when sellers took out the previous main bottom at 8126.25. The main trend will change to up on a trade through the last main top at 9002.50.
The major range is 7494.00 to 9763.00. Its retracement zone at 8360.75 to 8628.50 is controlling the direction of the index today. The initial plunge started when the bottom fell out of this retracement zone.
Daily Technical Forecast
The market is currently trading at 8150.50, which is nearly the mid-point of the day’s range and about halfway between a pair of uptrending Gann angles at 8350.00 and 7922.00.
On the upside, the nearest resistance target is actually a price cluster formed by an uptrending Gann angle at 8350.00 and the Fibonacci level at 8360.75. Overcoming this area could lead to a test of the steep downtrending Gann angle at 8746.50. Turning higher for the session will indicate the return of buyers.
On the downside, a failure to hold 7922.00 will indicate the selling is getting stronger. This could trigger a further break into the next uptrending Gann angle at 7708.00. This is the last potential support angle before the 7494.00 main bottom.