Trading plan for Aug. 3, 2016

160802-ES-daily

ESU6 Aug. 2, 2016. Dailoy chart.

ES finally broke its narrow sideways range yesterday and had its second day of loss. It failed to close Monday’s gap at 2164.50 and sold off from it. But it managed to hold above the 20-day moving average line for the close.

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This section contains the buy/sell levels for Wednesday. It is reserved for Daily and Full Access members.

 

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Today the 20EMA line will continue to act as support, but the market may break through it again. The broken resistance line at 2135 area needs to be retested once before the long-term buyers step into the buying side again. The major long-term support is at the 2050 level.

Daily PMO indicator continues to move down, which is not sending a good message to the buyers. As long as the fast line crosses below signal line, a selling signal is generated and more selling should be expected.

Short on bounce in an early rally if there is one today, and buy later if ES drops into 2135 and 2120 area.

Outlook

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

Support and resistance

Major support levels: 2120-21, 2112-14.50, 2100-1997.50
Major resistance levels: 2179-78.50, 2188.50-87, 2195.50-93.50