Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

E-Mini Hits An Outside Up Week

By Al BrooksStock MarketsJul 26, 2021 09:43AM ET
www.investing.com/analysis/emini-hits-an-outside-up-week-200593638
E-Mini Hits An Outside Up Week
By Al Brooks   |  Jul 26, 2021 09:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

On Friday, E-mini broke to a new all-time high (an outside up week) and reached the 4,404 measured move target based on the April through June trading range. It also broke above the 4,400 Big Round Number. The next target for the bulls is the top of the channel, which is above the 4,500 Big Round Number. There is no sign of a top and traders will continue to buy 1- to 3-day selloffs, even if they are strong, like the one last week.

A reversal down from here would be from an expanding triangle top on the daily chart. That is a major trend reversal pattern. If there was a strong sell signal bar and a couple of big bear bars, the reversal would have a 40% chance of leading to a selloff for a couple weeks.

On the weekly chart, last week was an outside up week in a Small Pullback Bull Trend. That slightly increases the chance of at least slightly higher prices. However, a big bull bar late in a bull trend has an increased risk of leading to a bear bar on the following week.

On the monthly chart, July so far has seen the sixth consecutive bull bar. That has not happened in 10 years. 

Since this is the final week of July, and while it is possible that there could be a reversal down to below the open of the month, especially since Wednesday’s FOMC announcement is a potential catalyst, it is more likely that July will be another bull bar.  A 7th consecutive bull bar would be even more rare. Consequently, August should close below the open of the month.

Once there is a bear bar on the monthly chart, there would be a parabolic wedge top. Traders would then look for a 15-20% correction over the following 2 months.

E-Mini 5-Minute Chart And What To Expect Today

  • E-mini is down 11 points in the overnight Globex session.
  • While the 4-day rally was extremely strong on the 5-minute and 60-minute charts, it was probably unsustainably strong. That increases the chance of sideways to down trading, which could last up to Wednesday’s FOMC announcement or the end of the month on Friday.
  • It also reduces the chance of a big bull day today.
  • Friday was a buy climax day. Consequently, there is a 75% chance of at least a couple hours of sideways to down trading beginning by the end of the second hour.

Friday’s E-mini Setups

E-mini Chart
E-mini Chart

Here are several reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).

My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter. These therefore are swing entries.

It is important to understand that most swing setups do not lead to swing trades. As soon as traders are disappointed, many exit. Those who exit prefer to get out with a small profit (scalp), but often have to exit with a small loss.

If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro E-mini.

E-Mini Hits An Outside Up Week
 

Related Articles

E-Mini Hits An Outside Up Week

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
jideofor robinson
jideofor robinson Jul 27, 2021 6:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nice
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email