/ES : Head and Shoulder formation – Watch the kumo support

/ES head and shoulder formation

/ES reached a high of 2007.6 and today saw its first selloff.

Ichimoku kumo support is around 1953. However, there is a need to be wary of the larger head and shoulder formation.

This selloff could see /ES reaching 1800.


/ES : Bullish with Weekly kumo resistance

/ES - Ichimoku Bullish breakout

/ES hit a low of 1927 pre-US trading hours on Tuesday.

By US open, it has rally and consolidated at the 1940 range. Breaking out of the Chikou Span resistance on the Ichimoku 5 minute chart is sufficient for me to go long on /ES

Ichimoku Weekly Chart - kumo resistance

While the long position is established, bear in mind the resistance on the Ichimoku Weekly Chart at 1976.


/ES : Kumo resistance – bull-bear tug of war at 1962

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With the recent rally from 1802, /ES has formed a ‘double bottom’ and a ‘W’ formation has confirmed a possible rally.

As it enter the 1962 region, the thick kumo resistance signifies possible heavy resistance and we may see /ES going into a trading range from 1962 to 1932.