ES - I look lower. But I am ready to short after a pullback
Yesterday we concluded that is ES breaks under support of 2,808 that would confirm completion of a large corrective wave ( B ) up. That support was broken and ES dropped more than 80 points.
Here I maintain a bearish directional bias. On Tuesday ES has hit a demand zone and got stuck.
Is it possible that ES will continue moving down without any pullback?
Yes, it is theoretically possible!
Is that a high probability shorting setup to go short here in anticipation of a potential breakdown?
No, I do not think so! I stick to a number of patterns I know and traded many times before. Sometimes I need to wait several days until I see a familiar pattern that I can turn into a trading setup and a trade.
But I am not in a hurry and I do not want to gamble. I want to make a trade that has reasonable chance to make money.
ES - 240 min chart updated at 9-30 PM on 4-21-2020
My count suggests that that wave ( B ) up has topped and ES has made the first move down in subwave ( a ) down.
Then bulls may counterattack and push price back up retracing part of teh decline that started at 2,885.
That would be my next setup I will be willing to trade.
I will be ready to short that pullback in anticipation of the continuation lower in subwave ( c ) down.
Looking at 30 min chart of ES (shown below) I can identify the next supply zone located at 2,794.50 – 2,798. I would be watching how ES reacts to that supply zone and will consider going short if bulls fail to take it out.
ES - 30 min chart updated at 9-30 PM on 4-21-2020
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