/ES S&P 500 Futures 4hr Chart
Hello traders, hope you all had a good trading day today for I was very busy and was not able to put on any trades. Looking at this 4hr /ES chart which has been a great add in feature to our systematic way of trading, we notice that we are in a steep rising channel from the bounce off the 1296 area. This was the backtest that we stated as a powerbuy area for the fact that it had 2 double levels of support from the price level and the backtest of the broken trendline. At the same time we had the bullish sentiment in the market, along with the pattern to aide is in having a reason to be so bullish. We have rallied over about 50 points off of those lows and have touched new highs in the S&P 500. Couple things we are looking at is this bearish rising wedge forming on our shorterm-longterm chart, we like to call it. If this pattern fails then we will most likely continue in this steep trending channel until we hit the next level of resistance. That level very well could be towards 1400 on the S&P500 futures. Of course its not going to happen overnight, but it is very well in the cards for some market players and participants. If we break the trendline to the right and just consolidate sideways then the next move is going to be another volatile move. It can be a move lower or it can be more consolidation before a push higher. The reason why I bring this up is because most of the time when you break a steep rising channel and trade to the right of it sellers would start to come in. However, if that happens in this current market and she does not roll over, then that may be a sign for sideways action and then a range break play for the next move. We will have to wait and see what happens, but with FED day starting tomorrow, we can definitely get ready for some volatility.
No comments:
Post a Comment