Hey Traders,
another of false hope for the bears, closing at session highs and trading as many as 15 pts above the daily low, putting in a daily doji:
esdES was trading as high as 848 in pre-market, which would have resulted in the open above the trendline, which seemed rather unlikely. ES traded into Thursday’s gap and the made a new high $tick of the day while stll at the lows which marked trend reversal perfectly followed by some green 2500tick candles and new uptrend channel that has not been broken all the way into the close. Another factor behind the strong close:
On the upside besides the November – January highs trendline there is not much resistance on the way up. On the way down here are some short term support levels:
100k1On the way down expected resistance is gap fill as well as 50% retracement of the move up in 809-810 area. After that it would be 23.6% retracement of the whole rally at 800.25, also great psychological level. It is not out of question tha twe could see retracement of 38% or 773.5 and still resuming higher.
Trend rotations on 100k contract charts have been working great lately, and had another great signal today.
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Euro came close to 1.3349 50% retracement of the recent rally and bounced. Euro is expected to trade in 1.3349 – 1.3469 range. Retracement to 1.3469 and back down to 1.335 area would result in completion of head and shoulers patter, the target of which would be retest of multimonth lows on the Euro:
eurohs2
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Gold has a near 3% down day after recently breaking some significant support levels and has extended further into oversold territory with levels not seen since 700 low. There are also few support /resistance lines to watch as well as 855.3 which is 50% retracement the move from yearly highs.
gold
Thats about it for today’s summary, if you find information on this blog helpful feel free to tell your trader friends about it, you can also follow EsEcFutures.com on twitter for intraday TA updated @ http://twitter.com/esecfutures
Thanks for visiting
Vlad