$ES: How Monthly Resistance Works

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$ES #ES-mini #Elliott Wave #trading setup

I consider the October rally as a subwave -b- up of a corrective consolidation in a wave (b) down:

ES-mini Daily chart

Let’s combine the wave analysis with application of the Month Opening Range startegy:

ES-mini 30 min chart

The market establishes the Month Opening Range during the first three trading days of a month. Bulls broke out over the Monthly Resistance 5819.25 on Oct 9, 2024.

Once getting broken, the monthly resistance becomes a strong support. Break over the red monthly resistance means the intra month trend turns up. Note how price built a flat base OVER the broken resistance.

A flat consolidation over the broken resistance is a very bullish sign because it builds a base for a potential new leg up.

PLAN A Bullish: We can count the whipsaw over the monthly support as a a competed corrective triangle, a base for a breakout that should start a new leg up(edited)

On a daily chart above I have marked up a target for a potential leg up, 5,871.50, at 76.4% ext of the wave (a) up

PLAN B: Now let me remind you that a sucessfull trader has to have bipolar thinking.

What I mean is that now we have a new meaningful well established support 5,819.25. If bull fail here to start a new leg up and allow bears to push ES back UNDER 5,819.25 that would be a nice short setup that would allow bears to quickly push ES down to the Monthly support 5,724.

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    $ES: Bears Have a Short Setup

    $ES #ES-mini ES-mini has stopped right under the Red Box yesterday. Bears keep ES under the Monthly Resistance 6,103. That

    CastAwayTrader February 11, 2025

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