We have a few signals confirming on the chart today.
1. Letter ‘M’ seems to be forming
2. The price level is trading near kumo support
3. With the current drop due to European election news, a bearish cross has been confirmed on the chart.
4. The leading kumo seems to confirm that it is twisting; confirming the change in trend.
5. A break at the kumo support will complete the kumo twist and adds give a confirmation to the bearish move.
Note: Kumo support at 1357.27
I think this is a pretty good setup from /ES.
1. On the Daily Ichimoku Chart, /ES is hitting the resistance level at around 1386.
2. The Ichimoku indicator already has a weak Bearish cross from the Tenkan sen and Kijun sen cross.
3. Looking at the leading kumo, it suggests that there is a possibility for a change in trend.
Target timeframe around 2 weeks for the pricelevel to fall through the kumo.
Long May 139 PUTS.
/ES has rebounded nicely off the kumo support around 1156.
With this rebound, it is facing heavy resistance above, in the form of both Tenkan sen and Kijun sen.
Both lines are getting very close. And if it fail to punch higher, we will have our Tenkan sen – Kijun sen Bearish cross.
The kumo support looks thin as it heads into the month of May; suggesting weakness in the next 3 weeks to come.
