Emini Weak Weekly Sell Signal And China Trade War
Al Brooks | Jun 20, 2018 09:22AM ET
The Emini gapped down yesterday. Since it again fell below last week’s low, it triggered the weekly sell signal for a 2nd time. However, it rallied from a double bottom and a test of the May 22 high. That was the breakout point for the June rally. Additionally, yesterday was the 3rd consecutive bull day in a 5 day pullback. It is unusual to have 3 bull bars as the market is falling, and this is a sign of buying pressure. Therefore, it reduces the chances of much lower prices.
Since yesterday was a wedge rally, it was a wedge bear flag on the 5 minute chart. The bears want a break below yesterday’s bull trend line and a test of yesterday’s low. They want the 5 day bear trend to continue and to fall below the May 22 high.
However, the Emini is up 7 points in the Globex session. It might therefore gap above yesterday’s high and the 60 minute EMA. This would be a bull breakout above yesterday’s wedge bear flag. The bulls would then want a measured move up based on the height of yesterday’s wedge.
Yesterday was a bull reversal day at key support. It is therefore a buy signal bar. This increases the chances of a big bull trend day today. A bull trend day is even more likely after 3 consecutive bull days in a 5 day selloff. However, if the breakout above the wedge reverses down, today could also be a bear trend day.
Every day for the past 2 weeks has spent a lot of time going sideways. If there is a trend up or down, there will probably be a lot of trading range trading as well. Day traders need to be ready for anything today, but the odds are there will be at least one good swing trade.
h3 Yesterday’s setups/h3
Here are several reasonable stop entry setups from yesterday. 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.