E-mini Russell 2000 Index (TF) Futures Technical Analysis – November 16, 2015 Forecast
December E-mini Russell 2000 Index futures rebounded after an early session sell-off, giving the index an upside bias shortly before the regular session opening.
The main trend turned down during the pre-market session when the index took out the previous swing bottom at 1134.90. However, the selling pressure dried up inside a key retracement zone.
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The main range is 1073.20 to 1201.20. Its retracement zone is 1137.20 to 1122.10. Today’s intraday low formed inside this zone at 1130.00. Buyers came in before the Fibonacci level at 1122.10. The momentum created by the move was strong enough to overcome the 50% level at 1137.20 and a long-term uptrending angle at 1141.20. Both of these levels are new support.
Based on Friday’s close at 1143.00, the direction of the market the rest of the session is likely to be determined by trader reaction to the angle at 1141.20.
A sustained move over 1141.20 will indicate the presence of buyers. The nearest upside target is a steep downtrending angle at 1161.20. If a short-term range develops between 1201.20 and 1130.00 then its retracement zone at 1165.60 to 1174.00 becomes the primary upside target.
A failure to hold 1141.20 will signal the presence of sellers. The first target is the 50% level at 1137.20. This is followed by the pre-market low at 1130.00 and the Fibonacci level at 1122.10. The daily chart opens up under 1122.10 with the next target an uptrending angle at 1107.20.
Watch the price action and read the order flow at 1141.20 today. Trader reaction to this angle will tell us whether the bulls or the bears are in control today. Be aware of heightened risks to geopolitical events and the potential for above average volatility.