Stocks / Options
ES Technical Chart
Monthly – Rejected by 50MA right below a long term-trend resistance.
Weekly – Rejected by 100MA – RSI is weak and below 50 line (See highlighted with red arrow). Now, if you go back and look at 10/2018 price actions, (highlighed with red box) you will see that the market was recovering from the low while the RSI was below 50 line. It was rejected twice before giving up 20/30% gains from ATH. However, in the current situation that may not happen while FED pouring unlimited money, but oftentimes history repeats itself and TA rely on that. With that said, there is still some room on the top before we can expect a major pullback.
Daily – It’s still in that rising wedge which we’ve been following since the recent bottom. However, it spiked above 50DMA which we were using as resistance. So now for the short-term, we’re going to use that 50DMA as support and the broken top-trend from the rising wedge as resistance. Then our first overhead target would be around 2930 followed by 3010 area around 200DMA.
4HR – Resistance area around 2883 and the should be the key level for Monday for the long side and again, 50DMA would be the support around 2853.
Overalll outlook: Short-term bullish up to 3000 area – long term BEARISH 2400 to 2200
Updated: 4/18/2020 @ 11:35pm
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