E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 18, 2017 Forecast
September E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. The market is also trading inside yesterday’s range which suggests investor indecision and impending volatility.
Today is the ninth day since the last swing bottom so the session begins with the index in the window of time for a potentially bearish closing price reversal top. This will occur when the index takes out 5863.75 then closes lower for the session.
This chart pattern does not signal a change in trend, but it does signal that the selling is greater than the buying at current price levels. It often leads to the start of a 2 to 3 day correction.
The main trend is up. A sustained move through 5863.75 will signal the presence of buyers. If the buying is strong enough, the rally could extend into the June 9 main top at 5907.50.
The index is also testing a steep uptrending angle at 5848.25. This angle has been guiding the market higher at a rate of 32 points per day since the main bottom at 5560.25 on July 5.
If the selling is strong enough then look for the angle to fail as support. This could trigger the start of an acceleration to the downside. The next major target is the main Fibonacci level at 5774.75.
Simply stated, look for an upside bias to develop on a sustained move over 5863.75 and for a downside bias to develop on a sustained move under 5848.25.
This article was originally posted on FX Empire