Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

E-Mini Tests The Bull Channel Top

Published 08/24/2021, 09:30 AM
Updated 07/09/2023, 06:31 AM

E-mini pre-open market analysis

E-mini daily chart

Yesterday was the third consecutive big bull day closing near its high, and at another new all-time high, with E-mini testing the bull channel top. The next target is the 4500 Big Round Number, which is also around the top of the bull channel on the daily chart. Above that, there is resistance at the measured move at 4537 based on the pandemic crash (Feb. 19, 2020 high to Mar. 23, 2020 low).

Due to its tight bull channel, there is an increased chance of a big break above the channel and then a reversal down. That is a blow-off top, and it would probably lead to at least a couple months of sideways to down trading. Until there is a clear top, traders will continue to buy, correctly betting on higher prices.

Bears want the month to close below the open of the month at 4408.00. There are 5 trading days remaining in August, and that is within reach.

E-mini 5-minute chart and what to expect today

E-mini was up 4 points in the overnight Globex session. Yesterday was a buy climax day; there is only a 25% chance today will be another Small Pullback Bull Trend Day. In addition, there is a 75% chance of at least a couple hours of sideways to down trading starting by the end of the second hour. This is true even though the second half of yesterday already formed a trading range.

Bears see a lower high major trend reversal in that trading range and are hoping for a break below the trading range today. They want a reversal down after 3 strong days up, but bulls will buy the first 1- to 3-day pullback. Since a trading range is Breakout Mode, that means there is about a 50% chance of a successful breakout up or down, and a 50% chance that the first breakout will fail and reverse.

Yesterday’s E-mini setups

E-mini Trading Range Chart

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.