E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7830.25, Weakens Under 7818.75

September E-mini NASDAQ-100 Index futures are trading higher at the mid-session after gapping on the opening in response to the resumption of trade talks between the United States and China. The rally is being primarily supported by broad gains in chipmaker shares. Shares of Qualcomm and Broadcom were up 2% and 4.1% respectively.

At 15:24 GMT, September E-mini NASDAQ-100 Index futures are trading 7800.00, up 106.25 or +1.36%.

As part of the agreement to resume trade talks, President Trump said he would allow U.S. manufacturers to sell key components to Chinese communications giant Huawei. This is providing most of the support today for technology shares especially chipmakers.

E-mini NASDAQ-100 Index
Daily September E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend resumed on Monday after buyers took out the recent minor top at 7821.00, but the rally fell well short of the contract high at 7910.75.

Investors are having a problem dealing with the gap higher opening. The price action suggests they are a little reluctant to buy strength at current price levels and would prefer to buy a pullback into support.

The new short-term range is 7446.25 to 7849.75. Its retracement zone at 7648.00 to 7600.25 is support.

The major support is the 7551.00 to 7439.75 retracement zone. It is also controlling the longer-term direction of the index.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at 7818.75 and 7830.25.

Bullish Scenario

A sustained move over 7830.25 will indicate the presence of buyers. Taking out today’s intraday high at 7849.75 will indicate the buying is getting stronger. This could create the momentum needed to challenge the April 25 main top at 7910.75.

Bearish Scenario

A sustained move under 7818.75 will signal the presence of sellers. The daily chart is wide open under this level with the next target coming in at 7726.75.

Overview

The lack of follow-through to the upside after the gap opening is of some concern, but this could be blamed on low volume. Thursday is a holiday and Friday is the U.S. Non-Farm Payrolls report. Furthermore, traders may not want to chase the market higher on the trade talk news after having been burned in May for getting too optimistic about a trade deal.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.