Top-Down Analysis - S&P 500 Futures
Updated
This post is a classic multiple-timeframe analysis on ES futures. You can just read it , incorporate it into your own current analysis , and furthermore use it as a template to analyse other markets. 😃 They are all welcomed !!!
Now I will post the most important piece here , and other related analyses will be at the comment session.
The discussion will start with a weekly ES chart.
First, we need to draw horizontal lines that clearly identify the zones of demand and supply ✍. Stop! What is a zone of demand/supply? Bear in mind, a demand zone describes a price level that is too cheap and people just rush in to buy. Usually they appear on a technical chart a "V" shape, and no consolidation happen at that level all the time. The logic is the same for a supply zone, and they show up in an inverse "V" shape.
In addition to zones of demand and supply , I also drew an ascending channel , which is a good fit to describe the ultimate bullish move last couple of months. A false breakout of the channel , price returning inside the channel , price not finding support until hitting the demand zone , just a perfect summary of what happened in the covid-19 market.😵
Here is my prediction:
ES will find support at around 2400-2500 and continue its bullish move again. I will explain it with an inverse head-and-shoulder pattern. Left shoulder at 2400-2500 , head at 2200 , and the right should be at ? It takes some imagination , but I can tell you the right one are always at similar levels as the left one is.
As a chartist, we should always imagine how the chart will work out rather than use hindsight to tell a story.🕵
If you really love the way I wrote about ES, please like,share my posts and follow my little account. I will do more this kind of analysis on other markets if the feedback from you is positive and encouraging!!! 😘
Don't miss the comments below, hourly and minute chart are right there.🤣
Now I will post the most important piece here , and other related analyses will be at the comment session.
The discussion will start with a weekly ES chart.
First, we need to draw horizontal lines that clearly identify the zones of demand and supply ✍. Stop! What is a zone of demand/supply? Bear in mind, a demand zone describes a price level that is too cheap and people just rush in to buy. Usually they appear on a technical chart a "V" shape, and no consolidation happen at that level all the time. The logic is the same for a supply zone, and they show up in an inverse "V" shape.
In addition to zones of demand and supply , I also drew an ascending channel , which is a good fit to describe the ultimate bullish move last couple of months. A false breakout of the channel , price returning inside the channel , price not finding support until hitting the demand zone , just a perfect summary of what happened in the covid-19 market.😵
Here is my prediction:
ES will find support at around 2400-2500 and continue its bullish move again. I will explain it with an inverse head-and-shoulder pattern. Left shoulder at 2400-2500 , head at 2200 , and the right should be at ? It takes some imagination , but I can tell you the right one are always at similar levels as the left one is.
As a chartist, we should always imagine how the chart will work out rather than use hindsight to tell a story.🕵
If you really love the way I wrote about ES, please like,share my posts and follow my little account. I will do more this kind of analysis on other markets if the feedback from you is positive and encouraging!!! 😘
Don't miss the comments below, hourly and minute chart are right there.🤣
Note
Summary of 5-min chart:
Broken ascending channel , with a little inverse head and shoulder down below, confused if the downtrend will continue
Note
Summary of hourly chart:
Month-long ascending channel broken, a dead cat bounce probably setting in, targeting at 2635 supply zone before
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.