Looking at ES for 10-20-22

2022년 10월 19일

The DAILY candle on 10-18-22 was a pretty good BEARISH candle. That is interesting because you can kind of identify a range that we have been stuck in since 9-22-22.

Trend ranges don't look as clean on Daily charts as they do on some lower time frames IMO. So its kinda hard to pick out the top and bottom of the range. BUT stretch that range out to where price last traded in this area which was 11-16-20 through 01-06-2021 and it makes a compelling argument for drawing the range lines where I have set them.

Ranges basically happen when buyers and sellers agree. When price is trading in a range most breakouts will fail and price will return to the range.

In the case of ES, on 10-18 price broke the upper band of the range and on 10-19 returned back below the upper range. The breakout was weaker than the 2 previous failed breakouts.

IF price action rules hold true we should see further downside movement on 10-20-22. I would expect some pretty stiff resistance around 3660 area. On the opposite side of that, 3732 area should be stiff resistance as well. 3732 to 3660 could also end up forming a new range.