Friday, March 22, 2013

ES Trade / Week of Mar 17 to Mar 23

The ES contract is near record highs and continues to trade in a bullish pattern of higher lows, higher highs on the daily time frame. It is hitting larger timeframe supply, but until it starts to fail respecting demand zones, the trade is to the long side. Technically, there is quite a divergence in the daily RSI, but until price breaks, opines aside; this market is bullish.

News from the Cyprus banking crises on Mar 17 weekend sent the Euro (6E) plunging but quickly recovering. Demand zones are being respected indicating we have buyers at lower different levels.

In the 60 min timeframe, a fresh demand zone formed in a well defined DROP - BASE - RALLY. The retest of this demand zone forms the trade.

Trade #1 - Long ES

Grade the Trade (+2)

During the week, price retraced into this fresh demand zone nicely respecting the demand zone price boundary. Two price targets are identified at 3:1 or better reward to risk. The first target hit quickly netting just under 10 ES points/contract. With multiple contracts, one could continue to hold a partial position as it looks like this market will continue to rise.

No comments :