Tomorrow’s Weekly Candlestick Battle
Today’s session was just a shakefest on the 1HR 20EMA, the entire day session’s range was only 8.50 points. The 78.6% fibonacci retracement acted as a major resistance during the overnight session along with hourly extreme overbought signal confirming.
What’s next?
Daily closed at 2079.25 as a doji candle. This session actually favoured the bulls because the hourly moving averages were able to grind up even more and act as major support levels with today’s consolidation. Currently, 1HR 50SMA = 2069.55 and 1HR 200SMA = 2059.45.
Nothing has changed in terms of intermediate targets from last night’s update:
The intermediate targets are 2092,
2100 and 2110 as long price remains above 2060. These become effective into immediate
targets when price trades above 2087.
For bears: Must have a hard rejection tomorrow since
the bulls are testing against the 78.6% fib retracement of 2086.34. A close
above 78.6% would suggest a 100% retracement back to 2110.25 is in the works.
Bears must break below 2060 in order to derail this bull train setup. The 2060
level represents the daily 20EMA and 200SMA support region.
The Cup and Handle Pattern
For ES, the
cup and handle 100% measure move targets 2128.50. The SPX cup and handle 100%
measure move targets 2114, it’s relatively lower due to the ES Sunday gap low
skew.
The Weekly Chart Potential within the
Context of Monthly (Typo Fixed)
Currently,
the weekly chart is trying to form a bullish engulfing candle. This means that
the weekly bull’s primary goal is to close at/near highs for the week. Ideally
close at or above 2093 and then it would be a very bullish weekly setup to new
all time highs. In the context of the monthly chart, August 2015 vs October
2014 formed a double bottom – this is the intermediate swing breakout bulls are
looking for new ATH. Remember, the October monthly bar was a huge bull engulf
that still gives the potential of a breakout the next few subsequent months as
long as price stays above October’s half way candle point.
