E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 28, 2019 Forecast

James Hyerczyk

June E-mini NASDAQ-100 Index futures are trading slightly higher early Tuesday, but picking up where it left off on Friday, but posting an inside range. The price action suggests investor indecision and impending volatility.

There were no new developments over the week-end concerning U.S.-China trade relations, or for that matter U.S.-China technology relations. However, investors still look a little jittery and reluctant to buy as if they are waiting for the other shoe to drop.

Most of last week’s weakness was generated by the May 23 plunge that was fueled by concerns over a weakening economy. Going forward, traders are going to be more data dependent as they assess the damage from the U.S.-China trade dispute. They will be looking for weakness in the labor market and in inflation. Two key reasons why the Fed may be forced to cut rates later in the year.

At 07:37 GMT, June E-mini NASDAQ-100 Index futures are trading 7332.75, up 14.50 or +0.19%.

Daily June E-mini NASDAQ-100 Index
Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down last week when sellers took out the previous main bottom at 7290.00. The main trend will change to up on a move through the swing top at 7641.00. A trade through last week’s low at 7268.00 will indicate the selling pressure is getting stronger.

The trend is not likely to turn up on Tuesday, but since the index is down eight sessions from its last main top, it’s time to start watching for a potentially bullish closing price reversal bottom.

The index is currently trading inside a retracement zone at 7422.75 to 7314.75. This zone is controlling the longer-term direction of the index.

The main range is 7879.50 to 7268.00. Its retracement zone at 7573.75 to 7646.00 is a resistance zone target.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to the main Fibonacci level at 7314.75.

Bullish Scenario

A sustained move over 7314.75 will indicate the presence of buyers. This could drive the index into the downtrending Gann angle at 7175.50. Sellers could return on the first test of this angle, but if they take it out then look for the rally to extend into the main 50% level at 7422.75. This is another potential resistance/breakout point with a downtrending Gann angle at 7529.00 the next major target.

Bearish Scenario

A sustained move under 7314.75 will signal the presence of sellers. If this move creates enough downside momentum then look for a challenge of last week’s low at 7268.00. This is another trigger point for an acceleration to the downside with the next major Fibonacci target coming in at 7035.00.

This article was originally posted on FX Empire