New Potential Price Channel On ES Chart
Trader Moe | Oct 23, 2014 01:46AM ET
The regular market close came as ES established a potential new price channel (gray on chart).
ES could kill this channel very quickly (purple scenario). But if ES breaks out upwards past its late-day megaphone VWAP at 1927.50 pretty quickly here, the price channel has a real shot at continuing (green scenario).
If ES can complete another wave up to the top of the gray channel, it would be a critical decision point. That wave would either be the start of a larger topping formation or the start of a breakout into a steeper channel (think melt-up).
It’s been a while since the market has given out so many contradictory signals in such a short time. Overnight will tell a lot.
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