ES Works Its Way Sideways

Published 03/21/2016, 10:54 AM
Updated 07/09/2023, 06:31 AM

ES Chart

ES Works its Way Sideways to the Blue Rising Megaphone Bottom

ES is working its way sideways to the bottom of its blue rising megaphone. It would usually complete a head and shoulders top just before or right after the breakout from the rising megaphone.

ES is likely working on the top of the head of a head and shoulders top for the red rising megaphone. The red rising megaphone is a topping pattern for a still larger rising megaphone out of the February 11 low.

The minimum retrace target upon the breakout from the blue rising megaphone is 2000. The minimum retrace target upon breakout from the red rising megaphone is 1912. After a bounce at roughly 1900, the minimum retrace target for the largest rising megaphone is 1805, however, if ES starts forming a large megaphone across roughly 1900 or 1930, it is likely to make a new high before reaching 1805 (purple scenario).

A megaphone after breakout from the blue or red rising megaphone would also tend to take the price to a new high before reaching the retrace target.

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