Emini Futures Trading Analysis- 23Mar2018


Hello Folks, the Emini S&P500 (ES) futures are at 2650. The futures broke their support at 2650 yesterday and went down till 2620 today morning, and have recovered from there back to 2650. However, 2600 is most likely to be tested once before any reversal, because the 200 day SMA is at 2596 currently, and the 200 day EMA is at 2610 currently. So the futures will most likely test 2600 level today or in the next couple of days before we can expect a reliable reversal.

We can expect a reversal from 2600 towards 2700 because the fundamentals of S&P500 companies are in good shape. But its very rare to see a reversal without testing the 200 day SMA when the index is so close to it. Strong support is at 2580, which should hold this time. Resistance is at 2680 and 2780. Please see the attached chart.

As per my latest analysis last night, the full range for S&P500 in 2018 is coming as: 2350 to 3150. By staying long above 2600, we will will gain most of the upside. Traders who want to be avoid volatility at current level can restart long positions from 2700 for target 2900, 2950, 3000.

I will mail you specifically when the reversal has been done, which will ensure that we have large buyers in place at lower levels around 2600. Then, our buying will be safe. As of now, there is no new trade. Traders who want to stay long above 2600, should keep 2580 as stop loss. But these trades should be done after the 2600 level has been tested. Thanks.

[Bonus Trade] Buy Emini Futures at 2600 for target 2650 with Stop loss 2580.

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