YM Emini Daily Futures Turning Bearish
Anna Coulling | Jun 29, 2020 01:53PM ET
U.S. markets remain fragile with last week’s price action on the daily chart for the YM emini futures contract closing with a wide spread down candle on high volume, which has been followed by a gapped down open at the start of the new trading week. That said, gaps do get filled and this is certainly the case so far in today’s trading session, but there are several important technical issues to consider and which help to confirm the longer-term outlook.
First, we have resistance building in the 26,500 area as denoted with the red dashed line of the accumulation and distribution indicator. This indicator for NinjaTrader increases in thickness each time a level is tested and holds, and so gives us a clear visual signal of the relative strength of the resistance (or support). The thicker the line, the stronger is the region. And as we can see from the chart, this region has been tested multiple times, all of which have failed to hold.
Next, consider the price action and associated volume of June 16 with the extreme volume and weak price action as the big operators sell into weakness, which is then repeated the following day thereby confirming the weakness.
Then, note the selling volume under the down candles, which have small wicks confirming the strength of the selling.
Finally, the trend monitor indicator at the bottom of the chart is transitioning to red as sentiment transitions to bearish. And note we also have a low volume node immediately below, so the market is likely to move through this swiftly and down to a possible platform of support at 24,000 as denoted by the red dashed line of the accumulation and distribution indicator, and if this is breached, the volume point of control at 23,350 is the next logical pause point.
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.