ES1!, where we go from here...
Here is an updated chart. The daily range was contracting day after day and this is typically a sign of a bigger move coming soon. It does not really matter what will spark it. Let’s start from the upside scenario and what is in favor of it. A small consolidation area is formed at the upper edge of the balance. A breakout of that small area will be a breakout of the larger balance as well, market is fractal. The price has a tendency to extend a mature balance 100% . The empty rectangle above is the projected area for the price to move and fill it. What else is in favor of the upside scenario - a notable resilience. The buyers clearly in control and buy even shallow pullbacks. Now, the downside scenario. A breakdown of the small upper balance and the trendline with a strong initiative move will lead to a retest of 2546 area first. Watch how the small consolidation area in the middle will be sliced through like it does not exist. Those are trapped buyers that will be covering their positions. The potential target is bottom edge of the balance 2520. That level could provide a nice bounce on first test. If you are an active trader that would be your cue to go long and play the bounce. After that I anticipate a consolidation at the lower edge.
Have a great weekend!
Have a great weekend!
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