Trading plan for July 28, 2016

160727-ES-daily

ESU6 July 27, 2016. Daily chart.

ES didn’t react strongly to the Fed rate announcement, price still traveled inside the 2170 to 2152 range. It has already spent 10 days basically going sideways.

It seems that ES is forming a round price top, which I think it is a distribution pattern. The daily PMO indicator also looks toppy. It gave buy signal on June 27, but the signal line turned down yesterday for the first time since then. It hints that the ES may have some pullback days on the way.

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2162.50-2165.50 remains a battle line for both sides. A breakout of the top line 2168-69.50 could lead ES to move higher 2178-82.50.

A failure to break above 2169.50 gives the ES an opportunity to continue going sideways or drop down to fill the 2146 gap and/or re-test the 2135.50-39 broken resistance zone before the buyers step in and push the price back up.

Outlook

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

Support and resistance

Major support levels: 2150-46, 2120-21, 2112-14.50, 2100-1997.50
Major resistance levels: 2179-78.50, 2188.50-87, 2195.50-93.50

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