E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 8360.75, Strengthens Over 8628.50

March E-mini NASDAQ-100 Index futures are trading sharply lower shortly before the cash market opening on Friday as volatility continued to grip the markets amid investor concerns over the global coronavirus outbreak.

Most of the weakness in the global equity markets at this time has been centered on the travel and leisure sector. However, technology companies remain vulnerable to supply-chain seizures.

At 13:42 GMT, March E-mini NASDAQ-100 index futures are trading 8373.00, down 275.75 or -3.19%.

Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 9002.50 will change the main trend to up. A move through 8126.25 will signal a resumption of the downtrend.

The major retracement zone, controlling the longer-term direction of the index is 8628.50 to 8360.85.

Inside the major retracement zone is the short-term retracement zone at 8564.50 to 8460.75.

These retracement levels are new resistance. Trading below these level will put the index in a weak position and signal increasing downside pressure.

Daily Technical Forecast

Based on the early price action and the current price at 8373.00, the direction of the March E-mini NASDAQ-100 Index the rest of the session on Friday is likely to be determined by trader reaction to the major Fibonacci level at 8360.75.

Bearish Scenario

A sustained move under 8360.75 will indicate the presence of sellers. The next three minor downside targets are 8286.25, 8206.25 and 8166.25. The latter is the last potential support angle before the 8126.25 main bottom.

Taking out this level will signal a resumption of the downtrend with the next target angle coming in at 7918.25.

Bullish Scenario

Holding above 8360.75 will indicate the presence of buyers. They are defending against a resumption of the downtrend. Don’t expect much of an intraday rally due to potential resistance levels at 8461.00, 8564.50 and 8628.50.

The index will have to overcome 8628.50 in order to create any decent upside momentum.

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.