Al Brooks | Jun 07, 2021 09:41AM ET
Friday triggered a High 1 buy signal, which is where the E-mini closed. Since closing Friday just below the all-time high, in a wedge rally test, it might gap up to a new all-time high today. E-mini was unable to break out on Friday to an all-time high, so it is possible a double top with the May 7 high could occur.
Bears need a strong reversal down from here, or from a failed breakout above the May high. If a breakout above the May high reverses down this week, there will be a wedge top with the May 14 and June 1 highs. A wedge rally to a double top is a reasonable sell signal, but most reversals fail, so only buy a bull breakout on the daily chart for a swing trade. Until there is a clear, strong reversal down, traders will continue to expect new highs.
h2 Overnight E-mini Globex trading on 5-minute chart/h2Disclaimer: Here are several reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. 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.
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 E-mini.
/h2
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