E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 21, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading higher on Thursday, boosted by yesterday’s dovish U.S. Federal Reserve Monetary Policy Meeting Minutes and the news that the U.S. and China may be drafting memorandums ahead of wrapping up a trade deal.

The minutes confirmed the Fed would remain “patient” when deciding to raise rates. Furthermore, the central bank hinted that policymakers are preparing to stop the practice of reducing its balance sheet later this year. Just a few hours ago, Reuters reported that the U.S. and China are moving closer to ending their seven-month trade dispute.

At 08:30, March E-mini NASDAQ-100 Index futures are trading 7089.75, up 17.00 or +0.24%.

E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out yesterday’s high. A trade through 6841.00 will change the main trend to down.

Today’s session begins with the index inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A move through 7032.25 will change the minor trend to down. This will also shift momentum to the downside.

The nearest support is the major Fibonacci level at 7022.25.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 6969.00.

Bullish Scenario

A sustained move over 6969.00 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for an eventual test of the December 3 main top at 7169.00.

Bearish Scenario

A sustained move under 6969.00 will signal the presence of sellers. If this move is able to attract enough sellers then look for a break into the minor bottom at .7032.25. Taking out this level should trigger a break into the major Fibonacci level at 7022.25.

The Fib level at 7022.25 is major support. If it fails then look for the selling to possibly extend into the next minor bottom at 6972.00. This is followed by the uptrending Gann angle at 6905.00. Since the main trend is up, look for buyers to re-emerge on a test of this angle.

Closing Price Reversal Top Scenario

A higher-high, lower-close will indicate the selling is greater than the buying at current price levels. This could trigger the start of a 2 to 3 day counter-trend break.

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.