E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 24, 2019 Forecast

James Hyerczyk
Updated

June E-mini NASDAQ-100 Index is trading higher shortly after the cash market opening. The rally is likely being fueled by short-covering in reaction to positive comments by President Trump, and position-squaring ahead of the U.S. Memorial Day week-end.

On Thursday afternoon, Trump told reporters he expected the U.S.-China trade war to end swiftly. He also said a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei. This is helping to boost demand for beat-up chipmaker stocks. Amazon shares are also trading higher, rising 1% after an analyst at Piper Jaffray said the company’s stock could reach $3000 in two years.

At 13:46 GMT, June E-mini NASDAQ-100 Index futures are trading 7368.00, up 58.75 or +0.78%.

Daily June E-mini NASDAQ-100 Index
Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7268.00 will signal a resumption of the downtrend. The main trend will change to up on a move through 7641.00.

The market is also trading inside the retracement zone at 7422.75 to 7314.75 that is controlling its near-term direction.

The short-term range is 7879.50 to 7268.00. Its retracement zone at 7573.75 to 7646.00 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at 7314.75.

Bullish Scenario

A sustained move over 7314.75 will indicate the presence of buyers. If this move can generate enough upside momentum then look for the rally to continue into the main 50% level at 7422.75. This is followed closely by a downtrending Gann angle at 7449.00. Sellers could come in on the first test of this angle. However, taking it out with strong buying could trigger a breakout into the next downtrending Gann angles at 7543.50 and 7545.00.

Bearish Scenario

A sustained move under 7314.75 will signal the presence of sellers. If this creates enough downside momentum then look for a further move into yesterday’s low at 7268.00. If this low fails then look for the selling to extend into the downtrending Gann angle at 7207.50. Crossing to the weak side of this angle will put the index in a bearish position. This could lead to an eventual test of a major Fibonacci level at 7035.00.

This article was originally posted on FX Empire

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