E-mini S&P 500 Index (ES) Futures Technical Analysis – Strengthens Over 2768.25, Weakens Under 2748.50
December E-mini S&P 500 Index futures are trading lower shortly after the pre-market opening on Monday. The early selling has also taken out Thursday’s low, turning 2824.25 into a new main top. At 2235 GMT, the index is at 2754.75, down 12.75 or -0.49%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 2824.25 will change the main trend to up. A move through 2712.25 will signal a resumption of the downtrend.
The major support zone is 2748.50 to 2701.75. This zone stopped the selling on October 11 at 2712.25.
The short-term range is 2712.25 to 2824.25. Its 50% level or pivot is 2768.25. This level is controlling the short-term direction of the index.
Combining the short-term and long-term 50% levels creates a potential support zone at 2768.25 to 2748.50.
The main range is 2947.00 to 2712.25. If the trend changes to up then buyers could run into its retracement zone at 2829.75 to 2857.25.
Daily Swing Chart Technical Forecast
Based on Friday’s close at 2767.50 and today’s early price action, the direction of the December E-mini S&P 500 Index on Monday is likely to be determined by trader reaction to the short-term 50% level at 2768.25.
A sustained move under 2768.25 will indicate the presence of sellers. If this produces enough downside momentum then look for the selling to extend into the main 50% level at 2748.50.
The 50% level at 2748.50 is the trigger point for a potential acceleration to the downside. The next targets come in at 2712.25 and 2701.75.
A sustained move over 2768.25 will signal the presence of buyers. If upside momentum continues to build over this level then look for an eventual rally to 2824.25.
Taking out 2824.25 will change the main trend to up, but don’t look for an acceleration to the upside due to the retracement zone at 2829.75 to 2857.25.
This article was originally posted on FX Empire
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