Emini Had Outside Down Reversal From The 2017 Close
Al Brooks | Apr 16, 2018 09:25AM ET
The Emini reversed down on the open on Friday from a breakout above the top of the 3 week range. In addition, it failed to hold above the 2017 close. Both are resistance levels.
Yesterday was an outside down bar in a tight trading range on the daily chart. In addition, it had a big tail below. Hence, it is a weak sell signal bar for today. The bears want a reversal down from a failed breakout above the 3 week trading range.
However, the bar on the weekly chart was a bull bar that closed near its high. This is good for the bulls. Furthermore, the rally from the April 2 low is still intact, although the bull channel is weak. This is true despite the lack of consecutive big bull bars on the daily chart.
Therefore, the Emini has still not yet decided between a breakout and a reversal. Because the Emini is at important resistance, there is an increased chance of a trend up or down starting this week.
h3 Overnight Emini Globex trading/h3
The Emini is up 16 points in the Globex session. Because Friday was a big day and today will open in its middle, there is an increased chance of an inside day today.
Yesterday’s high and low are magnets, but both are far away. In addition, the Emini has been sideways for 4 days. Therefore, traders will look for reversals, betting on an inside day and a 5th sideways day.
The Emini is spending a lot of time at the top of the 3 week trading range. The odds favor either a breakout or a reversal this week. Either one will probably result in at least a couple consecutive trend days. Until there is a clear trend, traders will continue to look for reversals every 2 – 3 hours.
h3 Friday’s setups/h3
Here are several reasonable stop entry setups from Friday. I sometimes also show limit order entries and entries on the close of bars.
/h3
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.