ES: Bulls Have a Setup to Test 4,300

  • CastAwayTrader
  • June 2, 2023
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#ES $ES-mini #trading setup

In my previous update I correctly predicted this rally:

I concluded: …”Here bulls have a setup to start a push higher either off 4,189 or 4,178.”

ES-30 min chart updated on May 31, 2023

Here this is how that chart looks now:

ES-mini 30 min chart, updated at 9-06 AM on 6-2-2023

Looking at that chart I do not like a five wave down structure behind the previous pullback in a subwave b down. Therefore one could argue this move up is a part of the subwave b down shaped as a Running Flat corrective structure:

ES 30 min chart

If we get a strong quick decline down to 4,205 that would be an attractive long setup.

Alternatively bulls may try to keep pushing higher without a pullback:

ES-mini very bullish micro chart, 30 min

That very bullish path allows bulls to test 4,300 with very little pullbacks on the way.

Here we can play a trick with applying negative extensions to the previous decline (see the red line, our base for applying negative extensions).

We always focus on two negative extentions:

123.6% = 4,259, and then

138.2% ext = 4,269.

Just to remind you that the target 3 that was set in mid May was -138.2% ext = 4,260.50 (read about that forecast here).

In conclusion:

Therefore, either bears start a move down to 4,203 right from here under the tricky scenario 1 described above, or, alternatively, bulls push ES higher to 4,260 -4,269 and then we get a pullback in a micro wave iv down (note it can be very shallow and find support at 4,240).

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