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E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 27, 2016 Forecast

By:
James Hyerczyk

June E-mini Russell 2000 Index futures are trading steady-to-better as investors await this morning’s U.S. preliminary GDP report at 1230 GMT and comments

E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 27, 2016 Forecast

June E-mini Russell 2000 Index futures are trading steady-to-better as investors await this morning’s U.S. preliminary GDP report at 1230 GMT and comments from Fed Chair Janet Yellen later in the afternoon. Both could cause renewed volatility.

The main trend is up according to the daily swing chart, however, yesterday’s closing price reversal top may be signaling a shift in momentum. It certainly indicates that bullish investors may be hedging their bets against a bearish report and comments from Yellen.

A trade through 1135.80 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day break. A move through 1143.60 will negate the reversal top and signal a resumption of the uptrend.

Daily June E-mini Russell 2000 Index

The new short-term range is 1082.70 to 1143.60. If the reversal top is confirmed then look for a possible short-term break into its retracement zone at 1113.10 to 1106.00.

Based on yesterday’s close at 1139.00 and the earlier price action, look for an upside bias to develop on a sustained move over the downtrending angle at 1143.90. The daily chart indicates there is plenty of room to the upside over this angle with the main top at 1154.40 the next target.

The inability to overcome the reversal top at 1143.60 and the downtrending angle at 1143.90 will indicate the presence of sellers. This could trigger a break into a downtrending angle at 1133.40 and a steep uptrending angle at 1130.70.

The angle at 1130.70 is the trigger point for a steep sell-off with the next major target the 50% level at 1113.50.

Look for an upside bias today on a sustained move over 1143.90. Look for selling pressure if this level cannot be taken out. A downside bias will develop if 1130.70 fails as support.

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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