ES Completing Bottom Before Rally To At Least 2044
Trader Moe | Dec 18, 2015 11:21AM ET
ES is Working on a Megaphone Bottom for Last Night’s Dip Before a Rally to at Least the Blue Megaphone VWAP
ES is completing a megaphone bottom on last night’s dip to roughly 2011.50. That was the retrace target for the orange rising megaphone. A lower low would be enough to complete the requirement for a retrace to the red megaphone VWAP. Otherwise a reversal at roughly 2017 this morning means that’s as close as ES is going to get before its mandatory retrace to the bright blue megaphone VWAP at 2044.
ES could form a top at or across 2044 (green and pink scenarios) for a plunge to the red megaphone bottom at 1950. Or ES could continue up to the top of its potential pink falling megaphone at roughly 2070 and put in a holiday triangle between that line and the navy blue line near 2000, which represents the bottom of a potential rising megaphone off the August 24 low (purple scenario).
ES could even kill the pink falling megaphone with a move back up to 2100, though that’s unlikely.
The green or pink scenario would normally be at least a 3-to-1 favorite, but the holiday break may raise the odds of the purple scenario.
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.