{"id":97065,"date":"2020-02-12T06:20:00","date_gmt":"2020-02-12T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=97065"},"modified":"2020-02-12T19:44:24","modified_gmt":"2020-02-13T03:44:24","slug":"emini-wedge-top-possible-test-january-low","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/market-update\/emini-wedge-top-possible-test-january-low\/","title":{"rendered":"Emini wedge top for possible test of January low"},"content":{"rendered":"\n

Emini and Forex Trading Update:
Wednesday February 12, 2020<\/h2>\n\n\n\n

I will update again at the end of the day.<\/p>\n\n\n\n

Pre-Open market analysis<\/h2>\n\n\n\n

Yesterday gapped up to the top of the 3 week wedge channel. It sold off to below Monday’s high and closed the gap. <\/p>\n\n\n\n

Since yesterday had a bear body on the daily chart, it is a sell signal bar for today. There is a wedge top and a higher high major trend reversal. However, if the bears get a reversal down, it will probably lead to a continuation of the 6 week trading range that began around Christmas and not a bear trend. <\/p>\n\n\n\n

A trading range disappoints bulls and bears. Consequently, tomorrow will probably not be a strong bear day. Most days will have a lot of trading range price action.<\/p>\n\n\n\n

If the Emini in fact has been in a trading range since Christmas, the target for the bears would be the bottom of the range. That would be about a 5% pullback.<\/p>\n\n\n\n

Overnight Emini Globex trading <\/h3>\n\n\n\n

The Emini is up 10 points in the Globex session. It will probably break above yesterday’s bear channel on the open. Yesterday was likely a bull flag from Monday’s rally. <\/p>\n\n\n\n

There is no nearby resistance and the bull trend on the daily and weekly charts are strong. That slightly increases the chance of a bull trend day. <\/p>\n\n\n\n

The bears will want a double top with yesterday’s high. But today is breaking above a bull flag (yesterday’s bear channel). That makes a bear trend less likely. <\/p>\n\n\n\n

Since yesterday was a protracted selloff, there is an increased chance of trading range trading today. But there is a bullish bias from the break above the bull flag.<\/p>\n\n\n\n

Can the 2 week rally continue much higher? If the bulls get 2 or 3 more bull bars, then the Emini is probably resuming its bull trend. Without that, the Emini is more likely at or near the top of a 6 week trading range. That means traders will look for a bear leg to begin within the next several weeks.<\/p>\n\n\n\n

Yesterday’s setups<\/h2>\n\n\n\n
\"Emini<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day.<\/p>\n\n\n\n

My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.<\/p>\n\n\n\n

If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini.<\/p>\n\n\n\n

EURUSD Forex market trading strategies<\/h2>\n\n\n\n
\"EURUSD<\/a><\/figure>\n\n\n\n

The daily chart of the EURUSD Forex market had a bull reversal day just above the October 1 low. That low is the bottom of the 6 month trading range and the 2 year bear trend. It is major support. A small bull bar is not a strong enough foundation to build a rally that will reverse 6 big bear days. <\/p>\n\n\n\n

Yesterday was a sign of minor profit-taking and not the end of the 6 week bear trend. The bulls typically need at least a small double bottom before they can get more than a 3 day rally. <\/p>\n\n\n\n

Also, there are several magnets below around the 1.08 Big Round Number. There are 2 measured move targets there and a gap from April 2017. The EURUSD is close enough to those magnets so that it will probably not be able to escape their magnetic pull. <\/p>\n\n\n\n

However, traders have bought every new low for 2 years. This has resulted in at least a 2 week, 200 pip rally every time. Consequently, the bulls might get one or two more 200 pip rallies before the bears reach 1.08.<\/p>\n\n\n\n

Overnight EURUSD Forex trading<\/h3>\n\n\n\n

The 5 minute chart of the EURUSD Forex market has been in a small range overnight. It did not trigger the buy signal on the daily chart. It turned down from 1 pip below yesterday’s high. <\/p>\n\n\n\n

Because the daily chart is so oversold, there is an increased chance of a strong short covering rally at any time. Also, the October low is a magnet that is only 12 pips below yesterday’s low. That increases the chance of s surprisingly strong breakout below that support. <\/p>\n\n\n\n

But what is most likely? Yesterday was a small sideways day. Today is also a small sideways day. The bears are probably exhausted and the bulls do not believe that yesterday is a reliable bottom. Therefore, today will probably remain as another small trading range day. The potential for a big move up or down is there, but the probability is small.<\/p>\n\n\n\n

Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n
\"Emini<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups for today. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day.<\/p>\n\n\n\n

My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.<\/p>\n\n\n\n

If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini. <\/p>\n\n\n\n

End of day summary<\/h3>\n\n\n\n

The Emini gapped above yesterday’s bear channel and then broke above yesterday’s high. There was no follow-through buying and it entered a trading range. There was a small rally into the close.<\/p>\n\n\n\n

Traders are deciding if the 3 week rally is going to reverse down from a wedge top or continue up in a bull trend. The size of the selloff 3 weeks ago makes traders wonder if the Emini has been in a trading range since Christmas. If so, it will probably test down to the January low by the end of March. <\/p>\n\n\n\n

But if the bulls get 2 or 3 bull bars with a couple closes above 3400, the odds will favor a measured move up from that January trading range. There is a Leg 1 = Leg 2 measured move target on the weekly chart just below 3500.<\/p>\n\n\n\n

See the weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n

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Trading Room<\/h2>\n\n\n\n

Traders can see the end of the day bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n\n\n\n

\n\n\n\n

Charts use Pacific Standard Time<\/h3>\n\n\n\n

When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Market Update<\/a> page.<\/p>\n\n\n\n

\n","protected":false},"excerpt":{"rendered":"

Emini and Forex Trading Update:Wednesday February 12, 2020 I will update again at the end of the day. Pre-Open market analysis Yesterday gapped up to the top of the 3 week wedge channel. It sold off to below Monday’s high and closed the gap. Since yesterday had a bear body on the daily chart, it […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"shadow","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[153],"tags":[],"class_list":{"0":"post-97065","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-market-update","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"Al","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/albrooks\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/97065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=97065"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/97065\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=97065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=97065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=97065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}