Emini Weak Low 2 Top Above April High
Al Brooks | May 21, 2020 09:20AM ET
The Emini triggered a High 1 buy signal yesterday by going above Tuesday’s high. Since Tuesday was a bear bar, it was a weak buy setup. However, traders still expect the rally to reach the 200 moving average just above yesterday’s high soon.
For the bears, yesterday is a sell signal bar for a 2nd failed breakout above the April high. But it and Monday had bull bodies They are weak sell signal bars in a bull trend. There will probably be more buyers than sellers below yesterday’s low if the Emini gets there today.
Remember, I have been saying since Monday that a breakout above major resistance typically leads to several sideways bar. I also said that the Emini will probably continue up to at least a little above the 200 day moving average, which is now at 2989. If it closes above it, the rally should test the March 3 lower high before there is a 10% pullback.
h3 Overnight Emini Globex trading/h3The Emini is down 8 points in the Globex session. It will therefore probably open within yesterday’s range.
It is only 28 points below the 200 day moving average. Traders expect it to get there today or tomorrow. Will it need a strong trend to get there? No, because the target is so close. Can the Emini reverse strongly down from here without reaching the target? The bears have a 40% chance.
Day traders expect the Emini to work higher, but there is no compelling reason to expect a strong trend up or down. Most days have had swings up and down. That is what day traders will expect today. Also, since today will probably open within yesterday’s range, day traders expect a trading range open for the 1st hour or two.
h2 Yesterday’s Setups/h2Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. I do not want the lines to be distracting. If they are longer, I make them dotted. But, they have to be visible, so I make the shorter ones solid. Buyers of the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).
My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.
Get The News You Want
If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini.
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.