Tuesday, 9 October 2012

ES.... Looks rather obvious to me...back to the 1428 area?

Three pivots 1, 2 & 3 and their relationship with the BC swing is clearly illustrated here. I am not saying we can pre judge what effect their reacion lines will have but you can already see the first RL ( from pivot 3-BC) is having some effect on price action even if the next moves goes lower- which it should - towards the CL. I have strong support marked on the chart form a monthly reaction line that is horizontal at 1435 and we may see a bounce off there which may provide  a short entry level. This reaction line you may see as a horizontal MULTI PIVOT LINE but if you put your mind to it you can find all the important  MPL's which are either ML's RL's.
PS:That horizontal black line you see is a PF & YOU should draw it if you are trying to make sense out of the ES using pitchforks...try it and see the serious support/resistance this fork offers. There is a high probability that we are heading back and maybe topping out for good here ...or we may bounce off it again (P0 6th Mch 1338.50/ P1 27th Mch 1419.50 & P2 1262 on 4th June).

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