Nasdaq 100 index futures (NQ)
Technical Analysis

Technical Analysis for NASDAQ 100 E-mini Futures

Weekly Chart

  • The NASDAQ 100 E-mini Futures have exhibited a strong uptrend on the weekly chart, as evidenced by the sequence of higher highs and higher lows.
  • The MACD indicator is above the signal line and positive, which supports the ongoing bullish momentum. However, the histogram shows a slight decrease in momentum as the bars get shorter.
  • The Average True Range (ATR) has been relatively stable, indicating consistent volatility in the market.
NQ weekly chart

Key Levels to Watch on the Weekly:

  • Resistance: The current price level around 17961.75 serves as immediate resistance. A push above this could lead us to test new highs.
  • Support: The key support level lies around the 17000 mark, aligning with previous consolidation areas.

Daily Chart

  • The daily chart shows a possible rising wedge formation, which can often be a reversal pattern if the price breaks down.
  • We’re seeing bearish divergence with the RSI, as the price makes higher highs while the RSI fails to follow, indicating weakening bullish momentum.
NQ daily chart

Key Levels to Watch on the Daily:

  • Resistance: The upper trendline of the wedge near 18120.50 is the immediate resistance.
  • Support: The 50-day moving average at 17718.10 may act as a short-term support level.

Potential Trades:

  • Bullish Scenario: If the price continues to hold above the 50-day moving average and breaks through the upper trendline of the wedge, we could enter a long position targeting the 18120.50 level. Our stop loss would be placed below the 50-day moving average.
  • Bearish Scenario: A break below the 50-day moving average could signal a short trade opportunity, targeting the next support level around 17000. In this case, a stop loss could be placed above the 50-day moving average to minimize potential losses.
NQ hourly chart

It’s essential to monitor these levels and adjust strategies accordingly. The rising wedge and RSI divergence should be watched closely for signs of a potential reversal. Remember to manage risks effectively, as markets can always move contrary to expectations.