E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Currently in Position to Post Potentially Bearish Weekly Reversal Top

March E-mini NASDAQ-100 Index futures are trading lower for the week after hitting a record high on Monday. The price action suggests the selling may be greater than the buying at current price levels.

Due to the prolonged move up in terms of price and time, the index is in the window of time on the weekly chart to form a potentially bearish closing price reversal top. A close below last week’s close at 7030.25 will form the reversal top.

If a reversal forms and there is a confirmation next week, we could see the start of a 2 to 3 week correction, or a 50% to 61.8% retracement of the current rally.

The main trend is up according to the weekly swing chart. A trade through 7047.25 will signal a resumption of the uptrend.

The main bottom is 6250.00. A move through this level will change the main trend to down.

The short-term range is 6250.00 to 7047.25. Its retracement zone at 6648.50 to 6554.50 is the first downside target.

The main range is 5776.00 to 7047.25. Its 50% level at 6411.50 is the primary downside target.

Forecast

The index is currently trading on the strong side of a steep uptrending Gann angle at 6762.00. This angle has been guiding the market higher for eight weeks.

If upside momentum resumes then buyers are going to go after 7047.25.

If momentum starts to build to the downside then look for a test of 6762.00. Since the main trend is up, buyers are likely to come in on a test of this angle.

If 6762.00 fails as support then look for a possible acceleration to the downside with key targets a 50% level at 6648.50, a Fibonacci level at 6554.50 and an uptrending Gann angle at 6506.00.

Look for a volatile move to the downside on Friday if buyers can’t turn this market higher for the week.