🚀 Netflix soars after Q4 earnings. Catch the best Big Tech plays before they report.Use free screener

Emini Triggered Weekly Buy Signal But Within August Trading Range

Published 08/14/2019, 08:58 AM
Updated 07/09/2023, 06:31 AM
ESH25
-0.78%

Pre-Open market analysis

I have been saying since Friday that this week would go above last week’s high to trigger the weekly buy signal. But I also said that there probably would be sellers above last week’s high and that the Emini is probably beginning to form a trading range that will last at least a couple weeks more. Yesterday triggered the buy signal but did not close far above last week’s high. That hesitation is consistent with what I have been saying.Something important happened yesterday on the 5 minute chart. That rally on the open was so unusually strong that it would normally have a 60% chance of follow-through buying over the next several days. However, context is important. It was also a test of last week’s high, and a trading range is likely for at least a couple weeks. Therefore, there is a 50% chance that it will turn out to be a bull trap and it will form a double top with last week’s high.

Overnight Emini Globex trading

The Emini is down 43 points in the Globex session. It, therefore, is reversing most of yesterday’s rally. But because the daily chart is in a trading range, this selloff might simply be a test of Monday’s low and a deep pullback from yesterday’s rally. The bears hope that it is the start of a reversal down from a double top with last week’s high.

Both possibilities are equally likely. The location at the bottom of the 5 day range is good for the bulls, but the likely big gap down today from yesterday’s close is good for the bears.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Day traders will be ready for anything today. There might be a break below Monday’s low and a trend down, or a reversal up after a test of Monday’s low. Finally, since the Emini has been sideways for 5 days and yesterday spent most of the day in a trading range, today could be another trading range day.

Yesterday’s setups

Emini 5 Minute Chart

Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI

Latest comments

Jimmy JohnAug 16, 2019, 04:16
Make a call instead of playing the middle
The Surfer TraderAug 15, 2019, 00:09
Amazing trading range. Looool
Loading next article…
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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.