MICRO E-MINI S&P500 INDEX FUTURES (MES1!), H4 Potential For Bearish Drop
Type:
Bearish Momentum
Key Levels:
Resistance: 4091.00
Pivot: 3998.25
Support: 3738.00
Preferred Case:
On the H4, with price moving in a descending trendline and RSI also showing a descending trendline, we have a bearish bias that price will continue to drop from the pivot at 3998.25 at the swing high in line with the 61.8% fibonacci retracement to the 1st support at 3738.00 at the multiple siwng lows.
Alternative Scenario:
Alternatively, price may rise above the support structure at the pivot and rise to the 1st resistance at 4091.00 at the overlap resistance in line with the 78.6% fibonacci retracement.
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.