E-mini Russell 2000 Index (TF) Futures Technical Analysis – November 19, 2015 Forecast

December E-mini Russell 2000 Index futures are called marginally higher today. There was a slightly follow-through to the upside during the pre-market session, but investors found resistance at a Fibonacci level, capping the gains.

The main trend is down according to the daily swing chart, but the momentum has been to the upside since November 16.

The short-term range is 1201.20 to 1130.00. Its retracement zone is 1165.60 to 1174.00. A downtrending angle also passes through this zone at 1169.20, making it valid price to watch also.

Based on the current price at 1173.10, the direction of the market the rest of the session is likely to be determined by trader reaction to the Fib level at 1174.00.

A sustained move over 1174.00 will signal the presence of buyers. This may create enough upside momentum to challenge the main 50% level at 1180.60. This is followed by another downtrending angle at 1185.20.

A sustained move under 1174.00 will indicate the presence of sellers. However, the selling pressure is likely to be labored because of potential support at 1169.20 and 1165.60.

Taking out 1165.60 will put the index on the bearish side of the short-term retracement zone, indicating that the selling is becoming stronger. This could also trigger an acceleration into an uptrending angle at 1154.00.

Watch the price action and order flow at 1174.00 early in the session. This will tell us whether the buyers or sellers are in control. If there is selling pressure, then 1165.60 will become very important later in the session.