E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 7245.25 Will Set Early Tone
June E-mini NASDAQ-100 Index futures are drifting lower early Thursday as traders look ahead to the European Central Bank monetary policy decision. The news that U.S.-Mexico negotiators failed to reach a deal on tariffs and immigration could also be putting a lid on the market. Continuing to underpin the index is the hope the Federal Reserve will lower interest rates earlier than expected this year to reignite an economy battered by trade disputes.
At 05:48 GMT, June E-mini NASDAQ-100 Index futures are trading 7215.75, down 12.75 or -0.17%.
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Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The main trend will change to up on a trade through 7641.00. A move through 6941.25 will signal a resumption of the downtrend.
The short-term range is 7641.00 to 6941.25. Its retracement zone at 7291.25 to 7373.75 is the first upside target.
The intermediate range is 7879.50 to 6941.25. Its retracement zone at 7410.50 to 7521.00 is the second target.
Combining the two zones makes 7373.75 to 7410.50 and important retracement area.
The major range is 5847.25 7879.50. Its retracement zone at 6863.25 to 6623.50 is the primary downside target and potential support.
Since the main trend is down, sellers are likely to show up in the upper retracement zones. They are going to try to form a secondary lower top.
Daily Swing Chart Technical Forecast
An early look at the action suggests investor indecision as traders await the outcome of several key events. Therefore, trader reaction to yesterday’s high at 7245.25 will set the early tone.
Bullish Scenario
Taking out 7245.25 and sustaining the move will indicate the presence of buyers. The first target is the short-term 50% level at 7291.25. This is followed by the short-term Fibonacci level at 7373.75 and the intermediate 50% level at 7410.50.
Bearish Scenario
A sustained move under 7245.25 will signal the presence of sellers. If they successfully defend this high then they make take a run at yesterday’s low at 7150.25. The idea is to create a short-term range between 6941.25 to 7245.25 and a retracement zone target at 7093.25.
This would be a standard move. The first rally is usually short-covering. Once the shorts are taken out then the market will pull back into a zone in an effort to attract real buyers. We’re looking for this pattern to emerge early today.