JOIN OUR MAILING LIST
Newsletter / Blog
ES #F Sudden down move after Divergences
The ES continuous contract made another all-time high at 2404.50 and then reversed. It is interesting that Divergence patterns on the Volume Simplified Oscillator occurred on the 234 minute, daily and weekly chart, warning about an anomaly in the market. The last up wave yesterday to the new all-time high, was reached on volume of 1.61 million contracts, the highest since April the 26th 2017. This up wave on the 234 minute chart moved only 20.25 points over 3 trading sessions and the angle of the wave line is also the shallowest for some time, showing a huge effort to get to the top (see our previous commentary posted earlier today). The reversal has moved 25.25 points, the highest down wave since the down wave that ended on April the 17th 2017. Volume Flow is weakening to the down side, and a pull back up occurred at a swing low of 2379.25, the resistance area mentioned earlier. A break of 2376 can lead to a larger sell off to 2357. The Volume Divergences and the quick move down, can make it difficult for the bulls to gain control again. We expect the pull back up to go to the 2387.25 to 2393.75 area, before the down move may continue again. Selling pressure has developed and the reversal up may only occur after some more testing of the 2379 to 2376 area.Join FB Group here : https://www.facebook.com/groups/1832814697041353/
The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading.
Trading Forex, Stocks and Options, Futures and any Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith.
|Back||Back to top|