Trading plan for Aug. 4, 2016

160803-ES-daily

ESU6 Aug. 3, 2016. Daily chart.

ES managed to hold above the 20ema line yesterday and tried to push price back above its broken support zone 2157.50-59.75. But at the end of the day, ES still closed under that zone.

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

 

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Yesterday volume was well-below average on a “rally” day which could mean that the short-term bearish sentiment and decline hasn’t completed yet.

The daily PMO indicator gave out a new SELL signal.

Today 2157.50-59.75 will be a very important zone. A move above it could trigger some kind of buy stops and push price further up to 2162.50-65.50 in an attempt to fill yesterday’s unfilled gap at 2164.50.

Holding under it could lead ES to go sideways or pullback near yesterday’s low area 2147-45.

ES may sell off before Friday’s Non-farm payroll report. But it could also go sideways to wait until tomorrow morning report is released.

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