ES price action analysis for 3 Apr 2020 trading plan
- 2 Apr 2020 recap - Although yesterday was a bullish day, the character does not confirm this. It started with ugly numbers of jobless claims, which drove ES down to spring the low (around 2433) of the previous day followed by a rally up to test 2525 thanks to a spike up in crude oil.
It was highlighted in M15 chart that the 2 candles tested the 2525 level has volume spike, suggests the demand was met by supply at this level.
On the daily chart, candle b (yesterday) has slight increase of volume compare to candle a, yet the result (to the up side) is mediocre. The rally from yesterday only reached about half way of the previous down candle. This suggests supply was present and managed to stop the up move at level 2525.
- Bias - slightly bearish. If ES fails to break above 2525 with aggressive demand, it might break below the swing low at 2425 and test further down.
- Potential intraday setup - Look for how ES interacts with 2525 or structures in smaller timeframe. A short entry after a test or up thrust of level 2525 is preferred.
- Key levels - Resistance: 2500, 2525 Support: 2450, 2425. Swing high and swing low from lower time frame.
- Note: Since yesterday has increase of supply, it is important to see how significant is the reaction. A trading range between 2425-2525 will be neutral. A break above 2525 is bullish and expect continuation of the rally. A break below 2425 should draw out more supply to test 2380 or lower.
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