S&P 500 E-mini Futures (ES) Technical Analysis and Price Forecast

UPDATE 21 OCT 2024 - BEAR FLAG ACTIVATED

S&P 500 E-mini Futures (ES) Technical Analysis and Price Forecast

👋 Hello investors and traders! Today, we’re diving into the technical analysis of the S&P 500 E-mini Futures (ES) on the daily timeframe. There’s been a lot of movement since the breakout of a key resistance line that’s held strong for over two years. Let’s break down what we’re seeing and what could be coming up next! 📈

🔑 Key Resistance Line & Breakout Levels in the Above S&P 500 E-mini Futures Technical Analysis Video

• 📅 First touchpoint for the Overhead Resistance: April 2022
• 📅 Second touchpoint: July 2024
• 📅 Third and fourth touchpoints: Led to a breakout above the long-term resistance line
• ✅ Breakout Retest: After the breakout, we saw a retest of the previous resistance (now support), which held firm, suggesting continued bullish momentum
• 🔄 Consolidation: A small period of consolidation on the support level, but the bias remains bullish for now

📊 Short-Term Outlook: Grinding Higher

• 🟢 Uptrend in play: ES is currently grinding higher after the retest of support
• 🔵 Blue Channel: We’re seeing prices respecting the blue channel, using it as support while moving upward
• ⚖️ Nasdaq Futures (NQ): Still hasn’t reached new all-time highs like ES, but looks promising
• 📈 Russell 2000 (RTY): Also showing signs of grinding up, contributing to overall bullish sentiment

🚨 The Bearish Case: What Could Go Wrong?

• 📉 Key Support: If ES breaks down below support, the bearish case could take control
• 🔥 Fake-Out Risk: If prices reach around the 6,000 level (a psychological round number), we may see a temporary bullish breakout that traps some late bulls
• ❗ Bear Trap Alert: A fake-out above 6,000 followed by a failure to sustain could lead to a deeper corrective move
• 🔻 Critical Breakdown Level: A break below 5,850 would confirm a more substantial bearish shift and could open the door for lower targets

🎯 What to Watch For

• 📊 Bullish Scenario:

  • Channel Support: Continue watching the blue channel as support holds and prices grind higher
  • 🚀 6,000 Level: Watch for a breakout or possible fake-out around the psychological 6,000 level

• 📉 Bearish Scenario:

  • ❗ 5,850 Breakdown: Keep an eye on the 5,850 support level—if it breaks, expect a potential long-term bearish move to unfold

As always, trade carefully and manage your risk appropriately! Visit ForexLive.com for more market insights and updates. Thank you, and happy trading! 💹✨