June 2, 2011
- Bear flag breakdown. ES may find support at 1302 level
- If the bear flag works well for bears price can reach 1302 level. This level has good support.
- If Flag fails and an upper breakout happens then 200 Hour moving average and cloud may act as resistance.
- ES DAILY CHART ANALYSIS
- First chart shows negative candlesticks that formed at 5600 levels. If we see one such daily candle today we may see an extended correction.
- But the structure for bulls will be positive till the support line that is shown in 2nd chart is not breached. It will be even better for bulls if 20 day moving average is protected.
- Breaking of the support line will lead to a breakdown towards 5100 levels.
- as long as 20 DMA is not taken out on closing basis 5700 levels is also possible