MICRO E-MINI S&P500 INDEX FUTURES (MES1!), H4 Potential For Bearish Drop
Type:
Bearish Momentum
Key Levels:
Resistance: 4083.25
Pivot: 3945.00
Support: 3905.25
Preferred Case:
On the H4, with price recently breaking the descending trend channel, we have a bullish bias that price will rise from the pivot at 3945.00 at the pullback swing high in line with the 78.6% fibonacci projection and 50% fibonacci retracement to the 1st resistance at 4083.25 at the pullback swing low in line with the 78.6% fibonacci retracement.
Alternative Scenario:
Alternatively, price may break the support structure at the pivot and drop to the 1st support at 3905.25 at the overlap support.
Fundamentals:
US indexes moved moderately higher with better-than-expected US economic reports. Hence, we have a bullish view on the micro e-mini S&P500 index.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.