Trading plan for Feb. 5, 2016

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160204-es daily

ESH6 Feb. 4, 2016

ES extended its prior rally by managing to hold the price above 1890. The ultra-short-term rally hasn’t finished yet. It could carry a little bit further up based on the PMO indicator.

Today 1901-1899.50 will be the key zone. As long as it holds up, ES still could move back up again to yesterday’s high area and struggle to move higher to 1940-45 area. But it will take lots of energy from buyers to take out the 1923.50 resistance level and go higher. Any failure to breakout that level could lead the ES to return to yesterday’s low or lower toward the 1885-75 zone.

Today the Non-farm payroll report will be released in early morning. It also can induce large price swings today. The 10/20/40-day ema lines all overlap each other in the 120mins, 60mins and 30mins chart. All indicate the ES could start the next directional trade with a big move.

Outlook

Short-term === Neutral
MEDIUM TERM === Neutral
LONG-TERM === Neutral

Support and Resistance

Major support levels: 1850-45.50, 1830-1825, 1816-1818, 1800-1795
Major resistance levels: 1956.50-55.50, 1967-69, 1975-82