ES: Triangle Vs. Megaphone Short-Term Top
Trader Moe | Jun 24, 2015 12:48PM ET
ES has Broken Out Downwards from a Legal Topping Triangle (Blue) but Watch Out in Case it Morphs into a Megaphone (Red)
ES has broken out downwards from a legal topping triangle (blue). Since breaking out it has retested the upper 2013 level several times.
This is a spot where ES could easily morph that topping triangle into a topping megaphone (red), and if the price breaks out through 2014ish, that’s likely what’s happening.
Otherwise, ES is likely headed for at least a retest of the 50 dma, almost certainly the major multi-megaphone VWAP at 2074, and it’s still a favorite to retest the March low to put a potential H&S on the daily chart.
En route to those targets, ES could form an H&S with a neckline at 2097, so be sure to watch out for another killer right shoulder there.
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