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ES Futures at Crossroads: Key Support at 6000 Tested as Momentum Fades

AI Take- 

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Here’s the analysis of your ES 24-hour futures hourly chart:

Key Observations:

  1. Trend Analysis:
    • Short-term Trend: The price appears to be in a mild consolidation phase after a recent pullback. It’s attempting to hold the support near 6000.
    • Intermediate Trend: The chart shows a broader uptrend with multiple higher lows and higher highs, but the recent retracement challenges momentum.
  2. Support and Resistance Levels:
    • Support Zones:
      • Strong support is seen near 5996 and 5981, based on prior reaction lows and red trendlines.
      • 5945–5950 marks a critical demand zone if current support breaks.
    • Resistance Zones:
      • Immediate resistance is at 6035–6048, where previous highs align with trendline intersections.
      • A breakout above 6084 would signal renewed bullish momentum.
  3. Indicators:
    • MACD (Moving Average Convergence Divergence):
      • Bearish crossover visible, suggesting downward momentum. However, the histogram shows a slight decline in bearish pressure.
    • Fisher Indicator (66):
      • Oscillating near the overbought region and turning lower, reinforcing the likelihood of consolidation or downside pressure.
    • Momentum (33 close):
      • Indicates slowing bullish momentum, transitioning to a neutral or bearish bias.
  4. Channel & Trendlines:
    • The price is oscillating within a broader upward-sloping channel. However, the short-term price action is constrained within a descending channel, visible with red trendlines.
    • A breakout above 6035 would confirm a reversal to test the upper bounds of the green channel.
  5. Pattern Recognition:
    • A potential descending triangle is forming with the horizontal base near 5996 and descending trendline resistance.
    • If the price breaks below 5996, the target could be the 5950 range.

Actionable Insights:

  1. Bullish Scenario:
    • A breakout above 6035 with volume could trigger a move toward 6084 and potentially 6100+.
    • Use trailing stops to capture upward momentum.
  2. Bearish Scenario:
    • If the price breaks below 5996, expect increased selling pressure toward 5950 and possibly 5940.
    • Look for confirmation from momentum and MACD before initiating short trades.
  3. Neutral/Range-bound Strategy:
    • If the price remains between 5996–6035, consider range trading with tight stop-losses.

Would you like further analysis or trade setup suggestions? Volatility Resurgence: Cycle-Based Technical Analysis for Market Professionals

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