Homework for Friday 2009.05.29

28. May 2009
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Tomorrow is the last trading day in May.  Below is a daily ES chart.  Not only is price trapped in a channel (as shown in this pic), but it is getting the squeeze between two forks (the three ascending blue lines and the brownish line that price is currently sitting right on top of.  

My daily indicators are looking bullish, so we may see a pop out of this fork.  The 905 area (current area) should offer support.  The median line (middle of the three, parallel blue lines (fork)) is around 921 (Gann level at 922, and 5/20 high at 923.50) should offer some resistance if we get up there.

If we stay within the fork, we may find resistance at the 905 area (current area) and support at 890-892, the bottom of the fork and yesterday's open.  Nearby is the 889.25 Gann level (as shown in final image).

 

Barring the idea of the 905 area containing this, I have a 50% pullback at 900.25, which also corresponds to the next Gann level we run into.  If we find reaction there, the target for that move is at 912.75. The next measured pullback is at 897.50, with a target of 914 (also corresponds to a Gann level at 914.25 and the 5/27 high).

UPDATE: The afterhour rally pulled the "900.25 50% pullback" up to 902.50 (target 918.50). Similarly the "897.50" was pulled up to 900 (target 920), which is also our PP.  I added the chart below to illustrate.

 

 

 
Good hunting traders!
 
 
  

Homework

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