As we anticipated yesterday in our live coaching sessions, we have a beautiful fall on the e-mini ES futures (as well as the mini Dow, e-Mini Nasdaq, and e-mini Russell 2000). Today, this index will potentially go up and here’s why.
A quick analysis of the higher time frame indicates that the market is likely to retrace this morning because both the Stochastics and ADX are overextended. Once the retracement is complete, then, if price finds support, the downward move could resume.
While a trader could enter off the higher time frame chart, a better option would be to zero down in time for confirmation. Currently, with only about five minutes remaining, the move to the upside is being confirmed along with a magenta peak (confirming a retracement for resistance is needed). Of course, it is also necessary to determine where the likely retracement will end, as well.
Where is price likely to find resistance? The 2938 or 2966 could be potential resistance areas. If price approaches one of these areas and they hold, then a new low could be made this week
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