Two Scenarios on ES (S&P500 Futures) by ThinkingAntsOk
Use this as a guide to develop your view of the chart:
Main items we can see on the Daily chart:
a)Currently, the price is on a massive Resistance zone
b)We can see in the past that every time the price approaches the zone from below, we had a correction there
c)The correction can lead to a bearish continuation or a simple correction for a bullish movement.
LONG SCENARIO: The price should correct towards 2700-2725, and after that, if there is a breakout of the correction and the price is above it, we expect a continuation movement until the next resistance zone at 2950
SHORT SCENARIO: If the price reaches 2725-2700 and keeps falling, we will assume that the bullish scenario is invalid. Our Target for that bearish movement will be 2600. There we will expect a reaction
Remember: Our Main idea is that if this bullish movement is a correction of the previous bearish one from all-time highs, it Is not ready yet (we need something similar like the 2 ovals we draw on the chart. BEFORE thinking about selling the market.
Main items we can see on the Daily chart:
a)Currently, the price is on a massive Resistance zone
b)We can see in the past that every time the price approaches the zone from below, we had a correction there
c)The correction can lead to a bearish continuation or a simple correction for a bullish movement.
LONG SCENARIO: The price should correct towards 2700-2725, and after that, if there is a breakout of the correction and the price is above it, we expect a continuation movement until the next resistance zone at 2950
SHORT SCENARIO: If the price reaches 2725-2700 and keeps falling, we will assume that the bullish scenario is invalid. Our Target for that bearish movement will be 2600. There we will expect a reaction
Remember: Our Main idea is that if this bullish movement is a correction of the previous bearish one from all-time highs, it Is not ready yet (we need something similar like the 2 ovals we draw on the chart. BEFORE thinking about selling the market.