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E-mini S&P 500 Index (ES) Futures Technical Analysis – Major Fibonacci Resistance at 2930.25

Based on the early price action and the current price at 2898.75, the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to the main Fibonacci level at 2930.25.
James Hyerczyk

June E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The market gave back earlier gains in reaction to concerns about a second wave of coronavirus infections after Germany and South Korea reported a surge in COVID-19 cases after easing lockdowns.

Losses are being spread across sectors. Exxon Mobil Corp and Chevron Corp fell more than 1% in premarket trading, as oil prices tumbled. Battered travel-related stocks, including Carnival Corp, Norwegian Cruise Line Holdings Ltd, American Airlines Group Inc and United Airlines Holdings Inc dropped more than 2% each.

Marriott International Inc shed 1.8% as its quarterly profit fell short of already drastically lowered expectations, as bookings plunged.

At 13:24 GMT, June E-mini S&P 500 Index futures are trading 2898.75, down 29.75 or -1.02%.

Daily June E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2965.00 will signal a resumption of the uptrend. The main trend will change to down on a move through 2771.00.

The minor trend is also up. A trade through 2823.00 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 3397.75 to 2174.00. Its retracement zone at 2785.75 to 2930.25 is potential resistance. This zone is controlling the longer-term direction of the index.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2765.50 to 2652.50 is potential support.

Inside the main retracement zone is a pair of 50% levels at 2868.00 and 2841.00.

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Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 2898.75, the direction of the June E-mini S&P 500 Index is likely to be determined by trader reaction to the main Fibonacci level at 2930.25.

Bearish Scenario

A sustained move under 2930.25 will indicate the presence of sellers. If this continues to create enough downside momentum then look for the selling to possibly extend into the two pivots at 2868.00 and 2841.00.

If 2841.00 fails as support then look for a test of the minor bottom at 2823.00, followed by a cluster of support at 2785.75, 2771.00 ad 2765.50.

Bullish Scenario

A sustained move over 2930.25 will indicate the presence of buyers. Taking out the intraday high at 2947.00 will indicate the buying is getting stronger. This could lead to a test of the main top at 2965.00.

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