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E-mini S&P 500 Index (ES) Futures Technical Analysis – Needs to Overtake 2793.00 to Finish Strong

By:
James Hyerczyk
Published: Feb 22, 2019, 17:53 UTC

Based on the current price at 2790.50, the direction of the March E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the steep uptrending Gann angle at 2793.00.

E-mini S&P 500 Index

March E-mini S&P 500 Index futures are trading sharply higher at the mid-session on Friday. The benchmark index is being underpinned by gains in the technology sector, which are being driven by a strong performance in shares of Intel. Optimism that the U.S. and China are close to reaching a trade deal is also helping to generate today’s upside bias.

At 17:38 GMT, March E-mini S&P 500 Index futures are trading 2790.50, up 16.50 or +0.59%.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2798.00 will signal a resumption of the uptrend after posting a closing price reversal top on Thursday.

A move through 2764.25 will confirm the closing price reversal top. This could lead to a 2 to 3 day correction.

The short-term range is 2729.00 to 2798.00. Its retracement zone at 2763.50 to 2755.25 is the primary downside target.

Daily Technical Forecast

Based on the current price at 2790.50, the direction of the March E-mini S&P 500 Index into the close is likely to be determined by trader reaction to the steep uptrending Gann angle at 2793.00.

Bullish Scenario

Overtaking and sustaining a rally over 2793.00 will indicate the presence of buyers. The first upside target is 2798.00. This price is a potential trigger point for an acceleration to the upside with the next major target the December 3 main top at 2819.00.

Bearish Scenario

The inability to overcome 2793.00 and a sustained move under this level will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the next major target the short-term 50% level at 2763.50. This is followed closely by the short-term uptrending Gann angle at 2761.00.

If 2761.00 fails then look for the selling to extend into the short-term Fibonacci level at 2755.25, followed by a longer-term uptrending Gann angle at 2752.75.

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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