E-mini Russell 2000 Index (TF) Futures Technical Analysis – August 18, 2015 Forecast
September E-mini Russell 2000 Index futures are trading lower shortly before the cash market opening. Earlier in the session, the market posted a higher-high than the previous day, but the move stalled at 1224.80.
Based on the current price at 1220.10, the direction of the market is likely to be determined by trader reaction to the short-term Fibonacci level at 1220.80.
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Crossing to the bullish side of the Fib level at 1220.80 will give the market a bullish tone. The first upside objective is a downtrending angle at 1228.20. This angle is potential resistance, but also a trigger point for an upside breakout.
The first upside target over 1228.20 is the main top at 1242.80. A trade through this price will turn the main trend to up on the daily chart. Sustaining a rally over 1242.80 could lead to an eventual test of a downtrending angle at 1251.20.
A break under the Fib level at 1220.80 will signal the presence of sellers. The next downside target is a pair of angles at 1218.80 and 1217.20. Crossing to the bearish side of the angle at 1217.20 will put the market in a weak position with the next target coming in at 1214.00.
The daily chart opens up under 1214.00. Taking out this level with conviction could trigger a move into the next uptrending angle at 1201.20.
Watch the price action and read the order flow at 1220.80. This will tell us whether the bulls or the bears are in control.