E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trade Through 8378.75 Confirms Reversal Bottom

March E-mini NASDAQ-100 Index futures are expected to open lower based on the pre-market trade. The economic impact of the coronavirus on the global economy remains the major concern. However, investors are becoming more worried that fiscal and monetary policy responses by the government and central banks, respectively, will not be enough to prevent a global recession.

At 10:12 GMT, March E-mini NASDAQ-100 Index futures are trading at 8182.00, down 149.50 or -1.79%.

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.

On Tuesday, the index formed a potentially bullish closing price reversal bottom. A trade through 8378.75 will confirm the chart pattern. This will also shift momentum to the upside.

A move through 7814.25 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor range is 7814.25 to 8378.75. Its 50% level or pivot at 8096.50 is potential support.

The main range is 9763.00 to 7814.25. Its retracement zone at 8360.75 to 8628.50 is potential resistance. This zone is also controlling the longer-term direction of the index.

Daily Technical Forecast

Based on the early price action and the current price at 8382.00, the direction of the March E-mini NASDAQ-100 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the pivot at 8096.50.

Bearish Scenario

A sustained move under 8096.50 will indicate the presence of sellers. This could trigger a break into the long-term uptrending Gann angle at 7924.25. If this fails then look for the selling to possibly extend into the reversal bottom at 7814.25, followed by another uptrending Gann angle at 7710.50. This is the last potential support angle before the 7494.00 main bottom.

Bullish Scenario

A sustained move over 8096.50 will signal the presence of buyers. The first upside target angle drops in at 8234.50.

Overcoming 8234.50 could trigger a rally into the resistance cluster at 8360.75 to 8367.00.

Yesterday’s high at 8378.75 is a potential trigger point for an acceleration to the upside. This could extend the rally into another resistance cluster at 8618.50 to 8628.50.

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.