Wall of Fire (837)

26. March 2009
Comments (0)

A few charts on why I think the 837 area will be a wall of fire.  All charts are daily ES charts.

The center of a few major moves (notice the 50% line in each of the fib measurements): 

 

 

The 61.8% pullback of this last move downward:

 
 
A 180° move upwards from the March low.  This is an important Gann level.  Also, notice that the 90° level lines up with the 11/2008 lows, the 180+90 (270°) level lines up with the 1/2009 highs, and the 180° level lining up with a few other pivots.  The fact these levels are lining up with market action tells me this is a good spot to take a measurement from.
 
 
 
A couple bearish signs.  For Advanced Get users, we have a False Bar Stochastic setup on the daily (false bar down, stoch is over bought, Osc has returned to zero (and some)):

 
 
Every major reversal to the downside had an oscillator reading in the same general area as we are currently in.  See horizontal green line and how the oscillator (green/red mountains) reaches that area at the peaks: 
 

Lesson

Disclaimer

By downloading and using any of our studies, you agree to the following disclaimer:  
 
Past performance is not necessarily indicative of future results. The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.  
 
In considering whether to trade or to authorize someone else to trade for you, you should be aware of the following:
  • If you purchase a commodity option, you may sustain a total loss of the premium and of all transaction costs.
  • If you purchase or sell a commodity future or sell a commodity option, you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position.
  • If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position.
  • If you do not provide the requested funds within the prescribed time, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
  • Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a "limit move".
  • The placement of contingent orders by you or your trading advisor, such as a "stop-loss" or "stop-limit" order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.
  • The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. This brief statement cannot disclose all the risks and other significant aspects of the commodity markets. Before you trade you should inquire about any rules relevant to your particular contemplated transactions and ask the firm with which you intend to trade for details about the types of redress available in both your local and other relevant jurisdictions.
 
 
neoTOOLBOX.com does not guarantee results, information, or EFS studies and scripts in any shape or form.