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E-mini Russell 2000 Index (TF) Futures Technical Analysis – February 12, 2016 Forecast

By:
James Hyerczyk
Published: Feb 12, 2016, 13:35 UTC

March E-mini Russell 2000 Index futures are trading higher shortly before the cash market opening. The market continues to make a nice recovery following

Daily March E-mini Russell 2000 Index

March E-mini Russell 2000 Index futures are trading higher shortly before the cash market opening. The market continues to make a nice recovery following the steep sell-off early in the session on Thursday. Based on yesterday’s price action, the selling came from Asia and Europe while the buying was mostly U.S.-based.

Daily March E-mini Russell 2000 Index
Daily March E-mini Russell 2000 Index

The main trend is down according to the daily swing chart. A trade through 936.20 will signal a resumption of the downtrend. A trade through 1035.80 will turn the main trend to up.

The short-term range is 1035.80 to 936.20. Its retracement zone at 986.00 to 997.80 is the new primary upside target.

Based on Thursday’s close at 950.70 and the early price action, the direction of the index today is likely to be determined by trader reaction to the downtrending angle at 955.80.

A sustained move over 955.80 will signal the presence of buyers. The daily chart shows that the market is open to the upside so we could see an acceleration. The first major upside target comes in at 986.00. This is followed by a downtrending angle at 995.80.

Crossing to the weak side of the angle at 955.80 will indicate the presence of sellers. This may create enough downside momentum to trigger a break into yesterday’s low at 936.20.

The daily chart opens up once again under 936.20 with the next target a long-term downtrending angle at 904.00. This is followed by the June 24, 2013 bottom at 892.40.

Watch the price action and read the order flow at 955.80 throughout the session. Trader reaction to this number will tell us if the bulls or the bears are in control.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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