Nasdaq 100 index futures (NQ)
Technical Analysis

NASDAQ Futures (NQ) Bulls Well In The Green

  • Traders can consider shorter time frames for a bullish market stance.
  • Bullish Target: $16,168.75; Bearish Target: $14,815.50.
  • Entry Point Focus: Look for opportunities on red candles or dips.
  • Potential 1-2-3 reversal formation.
  • Bulls back in charge.


August 18th was the last time we looked at NQ. The market was retracing after a strong bull trend that lasted the entirety of this year. Just as we expected, the drop was only a correction and provided us with opportunities to go long. The correction was much needed as the market’s most significant retracement was only 4.5% in 6 months. You can go and read the previous article here.

Moving Forward

NQ rallied 7% since the previous analysis halted just before the previous local top. This leaves us in a difficult position because of a few reasons. The first is, the previous two days were bearish candlesticks. The second reason is that if we analyze the trend, after a solid uptrend and a retracement back to the 23% Fib level, it is common for price to grind back up toward the local top, then either break through it or fall significantly from there, taking out the low of the retracement. You can see what I mean in the picture below.

Chart image showing how a 1-2-3 reversal is formed

If price falls back down to the lows of the retracement, then there is a strong possibility of a 1-2-3 reversal formation, which leads to a further decline in price. This is not common on the daily chart with equities; however, based on backtesting, probabilities still appear to be in the bull’s favor.

NQ daily chart showing fib levels

What To Watch

It could be a good idea for traders who are bullish on the current market conditions to switch to a shorter time frame and look for entries on red candles or dips. $16,168.75 is the first bullish target, while $14,815.50 is the first bearish target.