$ES: Inverse H&S Pattern Should Power A Breakout

  • CastAwayTrader
  • June 9, 2024
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$ES #ES-mini #trading setup #Elliott Wave

The bullish wave count allows bulls to produce another stromg rally into Nov 24 US elections in the final subwave (c) of the wave (v) up:

ES-mini Daily chart

But before the wave (c) of (v) up can start we need the corrective subwave (b) down to bottom.

My wave count argues for another leg down in a subwave -c- of wave (b ) down.

I expect two most probable paths for that decline:

ES-mini 15 min chart

That chart allows bulls to play a bullish reversal powered by one of two potential bullish Inverse Head and Shoulders setupts:

(1) Bulls can stop the expected decline at the upper blue line (5,307 – 5,300) and turn it up. Think of a bullish cup-n-handle pattern. ES has completed a cup, now we need it to complete a small handle.

(2) Alternatively, the decline I expect may extend lower down to the Green Box and that would be the right shoulder for a bigger bullish Inverse Head and Shoulders.

In both cases, we need a move down to draw a smaller rounded or V-shaped handle before price comes back up to the neckline 5,370. I expect a pullback off that 5,370 level to create a bear trap. This is what bulls need to power a breakout that should follow.

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