Daily Technical Analysis is provided by Jason Sen of Day Trade Ideas, who has been day trading since the late 1980’s. Jason has been a contributor of Traders Summit since the beginning. He primarily focuses on providing technical analysis of the financial markets, including stock chart patterns, Forex and Metals setups, and other useful technical analysis.
Emini S&P December futures initially headed lower as expected testing key 200 week moving average support at 3590/85, but over ran to 3572. We very quickly recovered above 3590 – longs did well reaching targets of 3650/60 & strong resistance at 3700/20.
A high for the day exactly here but yesterday’s bullish engulfing candle suggests a bear squeeze has started.
Nasdaq December tested the important 200 week moving average at 11180/150. A break below 10990 was required for a sell signal but this was the low yesterday.
Emini Dow Jones futures followed the others higher to retest strong resistance at 29550/650 Shorts need stops above 29750.
Remember when support is broken it usually acts as resistance & vice-versa.
Update daily by 06:00 GMT.
Emini S&P December bullish engulfing candle off the 200 week moving average in severely oversold conditions suggests a low for the correction, at this stage at least. A high for the day exactly at strong resistance at 3700/20 but be ready to buy a break above 3720 targeting 3750/53. We should struggle to beat this level here but shorts are probably too risky now. If we continue higher look for 3790/95. Eventually we could reach 3850/60.
A dip below 3690 signals a test of support at 3660/50. Longs need stops below 3640.
Nasdaq December bullish engulfing candle off the 200 week moving average in severely oversold conditions suggests a low for the correction, with a potential double bottom buy signal. The bounce hit the target & strong resistance at 11350/390 with a high for the day exactly here. Buy a break above 11400 targeting 11500 & 11650/700. A high for the day certainly possible but shorts are risky now in what is likely to be a short squeeze in to the end of the week.
Holding strong resistance at 11350/390 targets 11270/250 before support at 11200/150. Longs need stops below 11050.
Emini Dow Jones shot higher to strong resistance at 29550/650 Shorts need stops above 29750. Buy a break above here targeting 29850/900 & 30150/200. Eventually we could reach 30500/600.
First support at 29300/200. Longs need stops below 29100.
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Jason Sen, Director