Trading plan for April 12, 2016

160411-ES-daily

ESM6 April 11 2016. Daily chart.

ES mainly repeated last Friday’s trading range 2055-2030 and continued its consolidation. It gapped strong at open and ran stops first before it gradually moved back to last Friday’s low area for closing.

ES tried to clear its short-term overbought condition but the sell signal given by the PMO continues. If/when the SST indicator moves into oversold territory, the price could turn up again.

But until the SST indicator gets there, the 200- and 40-day moving average lines will continue to be reasonable targets for any downside move.

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Today the ES could go lower if the 2030 level fails to hold up during overnight trading. Holding above 2030 could lead the ES to stay within a narrow range in the early sessions.

A break below 2026 will be bearish and a further decline to the 2010-09 zone should then be expected. Short any strong rally and buy any weakness in the early sessions.

Outlook

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

Support and resistance

Major support levels: 2021-23.50, 2009-07.50, 2000.50-03.50
Major resistance levels: 2051-52, 2064-62.50, 2075-77, 2085-88, 2098-2100

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