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E-mini S&P 500 Index (ES) Futures Technical Analysis – June 19, 2018 Forecast

By:
James Hyerczyk
Published: Jun 19, 2018, 07:37 UTC

Based on the early price action and the current price at 2742.25, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the uptrending Gann angle at 2739.25 and the short-term 50% level at 2737.50.

E-mini S&P 500 Index

September E-mini S&P 500 Index futures are trading sharply lower early Tuesday. The move is beginning fueled by aggressive selling in reaction to fears over a trade war between the United States and China.

Earlier in the session, the selling pressure was fueled by a threat by President Trump of new tariffs on Chinese goods and the subsequent threat of retaliation from China.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The shift in momentum occurred on June 13 with the formation of the bearish closing price reversal top. It was further confirmed when the minor trend changed to down.

The short-term range is 2679.25 to 2796.00. Its retracement zone at 2737.50 to 2723.75 is the first downside target.

The main range is 2595.75 to 2796.00. Its retracement zone at 2695.75 to 2672.25 is the next downside target.

Daily Technical Forecast

Based on the early price action and the current price at 2742.25, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the uptrending Gann angle at 2739.25 and the short-term 50% level at 2737.50.

A sustained move over 2738.25 will indicate the return of buyers. If this move generates enough upside momentum then look for a potential rally into the steep downtrending Gann angle at 2764.00. Overtaking this angle could drive the index into the next downtrending Gann angle at 2780.00. This angle has provided resistance for four consecutive sessions.

A sustained move under 2737.50 will signal the presence of sellers. This is the trigger point for a potential acceleration into a support cluster at 2723.75. Since the main trend is up, we could see a technical bounce on the first test of this area.

If 2723.25 fails as support then look for a further break into the next uptrending Gann angle at 2709.25. This is followed by the second retracement zone at 2695.75 to 2672.25. Inside this zone is the main bottom and change in trend point at 2679.25.

Basically, look for an intraday upside bias to develop on a sustained move over 2739.25. The intraday downside bias will resume on a sustained move under 2737.50.

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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