September E-mini NASDAQ-100 Index futures are trading higher about an hour after the cash market opening. The market is currently within striking distance of this week’s high at 7335.50 and the contract high at 7358.50.
Daily Technical Analysis
The main trend is down according to the daily swing chart. Momentum is trending higher, however. Due to the size of the current rally, it almost seems like the main trend is up, but don’t forget about the size of the recent downswing.
Today’s session begins with the index up nine days from the last main bottom. Since most closing price reversal tops occur inside 7 to 10 days, we’re still in the window of time for a reversal. So be careful buying strength.
A trade through 7335.50 will reaffirm the strength of the upside momentum. A move through 7358.50 will signal a resumption of the uptrend.
The minor trend is up. This is why the momentum is trending higher. A trade through 7204.50 will change the minor trend to down and shift momentum to the downside.
The short-term range is 7335.50 to 7204.50. Its 50% level or pivot is controlling the price action today.
The main range is 6956.00 to 7335.50. If the minor trend changes to down then look for the selling to extend into its retracement zone at 7145.75 to 7101.00.
The major retracement zone is 7107.00 to 7047.00. Combining the two retracement zones makes 7107.00 to 7101.00 the best downside target.
Daily Technical Forecast
Based on the early price action, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the pivot at 7270.00.
A sustained move over 7270.00 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at 7302.50. Overcoming this angle will indicate the buying is getting stronger. This could trigger a further rally into the next downtrending Gann angle at 7330.50, followed closely by the minor top at 7335.50.
Taking out 7335.50 could drive the index into the main top at 7358.50. Overcoming this top will change the main trend to up.
The inability to overcome 7302.50 will be the first sign of weakness. Crossing to the weak side of the pivot at 7270.00 will indicate the selling is getting stronger.
Two Gann angles cross at 7246.50 and 7244.00. We could see a technical bounce on the first test of this area. If 7244.00 fails then look out to the downside. We could see an acceleration to the downside with 7145.75 the next major target.
This article was originally posted on FX Empire
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