Wednesday, June 10, 2009

Locating support

Here is a 60 minute bar chart of e-mini trading covering the past 6 weeks or so. I see two obvious support points for the reaction down from the electronic top at 957.50 last Friday.

The first one is 918 or so (red dashed line). This would be where I think the market would be supported if it were to develop a "false breakout" from the trading range which extends from 922 to 957.

The second level is stronger. It is midpoint support near 903 (purple dotted line). A drop to that level would also make the drop from 957 equal the size of the last reaction from 929 (purple rectangles).

1 comment:

Ron said...

Nice analysis Carl. And also a very helpful educational explaination. Thanks.