$ES: We Got a Corrective a-b-c up Bounce

$ES #ES-mini #trading setup

“If bulls manage to reclaim the monthly support 4,727 we can see a quick rally pushing price back up to the Monthly Resistance 4,828.”

This is the Month Opening range strategy at its best:

The trading range of the first three full trading days created important boundaries we call the Monthly Support and the Monthly resistance. You can see that S&P made a low at 4,587.53 on the third trading day of a month. Then bears tested that low on the 4th trading day of a month but failed to break it. Trading is a zero sum game, if bears fail to break under a support, bulls get inspired to counter attack.

The Monthly Support for ES-mini is 4,727.

Here the rally in ES-mini has approached a resistance formed by confluence of two fibs:

4,772.75, a 50% retracement of the preceding decline, and
4,773.50, a 100% ext of the first leg up off the low.

In addition, at 4,773 ES will hit resistance of the dark red trend line.

So far Bulls produced a textbook corrective a-b-c up bounce off that key support. If bears manage to stop that rally under 4,774 that would leave bulls with a corrective bounce and provide bears with a very attractive short setup to break under the key support 4,737-4,726 and trigger a breakdown scenario that would allow bears to attack a support at 4,622 Gann’s level.

A break over 4,774 would open the door for a rally targeting a new higher high under the black path we discussed yesterday.

Subscribe to Free Updates

Get Unlimited Access

More To Explore

$ES: Two Paths Leading to the TOP

$ES #ES-mini #Elliott Wave #trading setup I keep tracking two scenarios / paths leading ES up to 6,000. The first

CastAwayTrader September 15, 2024

$ES: Two Path Leading to 6,000

$ES #ES-mini #Elliott Wave I have been tracking two scenarios and both allow bulls to push ES-mini to 6,000. Let’s

CastAwayTrader September 13, 2024

Important Disclaimer

CastAway Trader LLC, the publisher of this web-site and videos is not registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of the website www.castawaytrader.com and viewers of the videos are advised that all information presented on the website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user’s particular investment needs or objectives.

Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. All trading setups and/or trades presented in the web site and/or trading chat room by CastAway Trader an/or by other members of the chat should be considered hypothetical for educational purposes only and should not be expected to be replicated in a live trading account.

An investor could potentially lose all or more than the initial investment. You should not speculate with capital that you cannot afford to lose. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style.

You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor.

Any information posted on this web site is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of the website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information posted on the website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, CastAwayTrader LLC and its officers and employees undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that the owners, officers and employees of the web site www.castawaytrader.com may have long or short positions in securities that may be discussed on the website, Premium Trading Chat room and/or in the videos posted by CastAway Trader LLC.

Past results are not indicative of future profits.