April 9, 2012

  • ES one hour chart is falling in a channel. For bulls price has to sustain above the channel and the hourly cloud for a possible up move to happen.
  • Four hour chart shows price below 200 Period SMA. Bulls need to breakout above this level for a bigger pullback to happen

  • Price continue to move down in a channel
  • Four hour cloud too acting as stiff resistance. Four hour candle closing above the cloud may give a long trade.
  • In daily time frame price is trading below 20 and 200 SMA. Any up move if it has to be a larger one should trade above these two moving averages.

  • First chart shows Shaded portion which is crucial support level. Now that this level is taken out bulls need to go back above this level to avoid a bigger fall.
  • Price also has fallen below 200 Period SMA in four hour time frame.
  • Golden ratio shown in four hour chart may give a bounce But price need to stay above 200 Period SMA and the shaded portion for a bigger pullback to happen.

  • 20 Day SMA is near 5300, closing the day below this level would favor bears. Below 20 SMA supports are as shown in hourly charts.
  • For bulls a bigger move will unfold once price starts to trade above the daily cloud.

  • Correction of BAC is taking the price towards the up trend line. Price has closed below 20 Day SMA It's yet to test the up trend line which is expected to give support for the stock.
  • Fibonacci level of 23.6% is coinciding with the up trend line thus giving hope for bulls of a turnaround from this level.
  • Last chart is shown with the Golden cross. Rising 50 Day SMA should be a strong support level. Price has to stay above this level to maintain the bullish structure.


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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore