E-mini Russell 2000 Index (TF) Futures Technical Analysis – July 27, 2016 Forecast
September E-mini Russell 2000 Index futures are trading slightly higher in the pre-market session. The index failed to follow-through to the downside on Tuesday after the previous day’s closing price reversal top. The subsequent rally through the top negated the chart pattern.
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The main trend is up according to the daily swing chart. The main trend will turn down on a trade through 1194.70.
Based on Tuesday’s close at 1214.00 and the early price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 1218.70.
A sustained move over 1218.70 will indicate the presence of buyers. This could generate enough upside momentum to challenge the August 18, 2015 main top at 1224.80. Taking out this level will put the index in a bullish position with potential upside targets clustered at 1242.70, 1244.70 and 1245.60.
A sustained move under 1218.70 will signal the presence of sellers. The daily chart is open to the downside with the next target angle coming in at 1206.70. This angle is very important because it has held as support since July 19, having been tested five times since then.
A break through 1206.70 will indicate a shift in momentum to down. This could trigger an acceleration to the downside with the next target the main bottom at 1194.70. This is another potential trigger point for an acceleration into the next uptrending angle at 1185.60.
Watch the price action and read the order flow at 1218.70 today. Look for an upside bias on a sustained move over this level and a downside bias to develop on a sustained move under this angle.