E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Counter-Trend Upside Target is 13722.50 – 13803.00

June E-mini NASDAQ-100 index futures rebounded on Wednesday following a session defined by major weakness in technology stocks. Major tech shares rebounded in early trading. Apple and Tesla gained about 1% each after falling 3.5% and 1.7% respectively on Tuesday.

At 10:48 GMT, June E-mini NASDAQ-100 Index futures are trading 13613.75, up 77.75 or +0.57%.

On Tuesday, investors exited technology and growth stocks, pushing the cash market NASDAQ Composite down 1.9%. Along with losses in Apple and Tesla, shares of Netflix lost 1.2%, and Microsoft dropped 1.6%. Amazon and Facebook shed 2.2% and 1.3%, respectively. Alphabet fell 1.6%.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Tuesday when sellers took out the previous swing bottom at 13700.50. The main trend will change to up on a move through 14064.00.

The short-term range is 12609.75 to 14064.00. Its retracement zone at 13336.75 to 13165.25 is the first downside target.

The main range is 12200.00 to 14064.00. Its retracement zone at 13132.00 to 12912.00 is the major downside target area.

The retracement zones combine to form a potential support cluster at 13165.25 to 13132.00. We’re likely to see a technical bounce on the first test of this area.

The minor range is 14064.00 to 13380.75. Its retracement zone at 13722.50 to 13803.00 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this zone.

Daily Swing Chart Technical Forecast

The early inside trading range suggests investor indecision and impending volatility. In other words, we could be looking a two-sided trade on Wednesday. We’re going to use yesterday’s close at 13536.00 as our pivot.

Bullish Scenario

A sustained move over 13536 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 13722.50 to 13803.00. Since the main trend is down, sellers are likely to come in on a move into this retracement zone. Overcoming 13803.00 will be a sign of strength.

Bearish Scenario

A sustained move under 13536.00 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into yesterday’s low at 13380.75, followed closely by a 50% level at 13336.75.

If 13336.75 fails as support then we could see an acceleration into the price cluster at 13165.25 to 13132.00. Aggressive counter trend buyers could come in on a test of this area.

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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.