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E-mini S&P 500 Index (ES) Futures Technical Analysis – Could Strengthen Over 3235.25, Weaken Under 3227.75

By:
James Hyerczyk
Published: Jan 6, 2020, 15:48 UTC

Based on the early price action and the current price at 3229.25, the direction of the March E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at 3227.75.

E-mini S&P 500 Index

March E-mini S&P 500 Index futures are trading lower for a second straight session on Monday as concerns over geopolitical tensions between Iran and the United States remained high following last Friday’s airstrike that killed a top Iranian military official. Airline stocks are a big drag on the index due to rising fuel costs, while the energy sector is higher on the fear that a military conflict could disrupt the world’s oil supply.

At 15:34 GMT, March E-mini S&P 500 Index futures are trading 3229.25, down 6.25 or –0.20%.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3206.75 will indicate the selling is getting stronger. Taking out 3263.50 will signal a resumption of the uptrend.

On the upside, potential resistance levels are 3227.75 and 3235.25.

On the downside, the nearest support is a 50% level at 3190.75. This is followed by a Fibonacci level at 3173.75.

The main range is 3071.00 to 3263.50. Its retracement zone at 3167.25 to 3144.50 is the next potential downside target zone. This zone represents value so look for buyers to re-emerge if tested.

Daily Technical Forecast

Based on the early price action and the current price at 3229.25, the direction of the March E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at 3227.75.

Bullish Scenario

A sustained move over 3227.75 will indicate the presence of buyers. The first target is 3235.25. This price is a potential trigger point for an acceleration to the upside with potential uptrending target angles coming in at 3247.00 and 3254.25.

Overtaking 3254.25 will put the index in a position to challenge the all-time high at 3263.50.

Bearish Scenario

A sustained move under 3227.75 will signal the presence of sellers. This could trigger a break into last week’s low at 3206.75.

Taking out 3206.75 will indicate the selling is getting stronger with a 50% level at 3190.75 and an uptrending Gann angle at 3186.25 the next downside targets.

If 3186.25 fails then look for the selling to possible extend into 3173.75, followed closely by 3167.25.

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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