{"id":129476,"date":"2018-07-03T12:51:23","date_gmt":"2018-07-03T16:51:23","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=129476"},"modified":"2018-07-03T12:51:23","modified_gmt":"2018-07-03T16:51:23","slug":"index-support-zones-in-play-for-bigger-upside-move","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/07\/index-support-zones-in-play-for-bigger-upside-move\/","title":{"rendered":"Index Support Zones in Play for Bigger Upside Move"},"content":{"rendered":"
July 3, 2018<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

As we start the July 4th<\/sup>\u00a0trading week, it is time to look at the current market setup for signs of future strength or weakness.\u00a0 Yes, there is a lot of outside economic and geopolitical factors at play right now that could cause some major market moves, yet we continue to believe the US equities markets are setting up for another upside move after retesting support and shaking out some trades.<\/p>\n

Recently, there has been quite a bit of chatter about foreign and US debt levels as well as credit cycle events that many industry leaders are concerned with.\u00a0 Overall, yes, we have to be cautious of a pricing level revaluation as a result of the credit cycles that are changing.<\/p>\n

As the US Fed increases rates, this puts pressures on a vast array of credit market events that may cause some pricing concerns and economic concerns as foreclosures and repossessions tick higher.\u00a0 Yet, we believe the valuations within the stock market are currently based on a companies level of operations and ability to generate returns.\u00a0 Therefore, we believe the Q2 earning season, which is about to befall us, should be a very clear indication at to how well or poorly the US stock market is fairing in regards to fair pricing.<\/p>\n

This first chart, the ES 240-minute chart, clearly shows the WEDGE price pattern that we are following.\u00a0 By our estimates, this pattern is nearly complete (showing the completed 5 wave setup) and this pattern should likely prompt a moderately strong upside price breakout before the end of this trading week.\u00a0 Of course, the July 4th<\/sup>\u00a0holiday will interrupt trading for a bit, but we believe the 2700 bottom\/support levels are already in place and as long at that support level holds, the upside is the only outcome for this wedge formation.<\/p>\n

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This second chart is the ES Daily chart showing the same WEDGE formation over a longer span of time.\u00a0 Notice the clear support channels and the resistance channel that has contained price over the past 20+ days.\u00a0 This has been the nexus of the price decline and the root issue of much concern regarding downside price capabilities.<\/p>

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The one thing that may people fail to understand is that the historical price peaks and troughs are still indicative of Upside Price Channeling with higher troughs and higher peaks overall.\u00a0 We believe the 2700 level will hold as support and the ES chart will begin an upside price swing that could likely result in a rally to 2800+ quickly.<\/p>\n

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To add a bit of a kicker to this analysis report, this, our custom Tesla Price Vibrational Cycles analysis is showing us that the 2.25% vibrational cycle is nearly complete and that price is holding above the green support zone as well as holding above the blue price support channel.\u00a0 These Tesla Price Cycles operate as price boundaries and breakout zones.\u00a0 When price nears one of these levels, depending on the previous price direction and activity, we should expect a potential price reversal or breakout pattern \u2013 depending on the setup.<\/p>\n

Right now, the setup is \u201cstrong support with rotational price channeling showing an upside potential\u201d.\u00a0 This Tesla price cycle indicates that \u201cas long as support holds, we should expect to see an upside breakout\/trend with a potential for a move to $277.50 or $280+ as the final outcome.<\/p>\n

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This holiday week would be a perfect time to catch the markets by surprise with a big rally.\u00a0 Although it may not happen, we believe there is a strong potential for a surprise breakout rally soon and we believe these support levels are proving strong enough to prompt further upside price rallies.\u00a0 Even though many skills analysts are concerned about the credit cycles and global debt levels, we know the game can continue much longer than many people think it is possible to continue.\u00a0 As the old saying goes, \u201cdon\u2019t ever get married to a position\u201d.\u00a0 We are positioned for success if our analysis is correct and we will take small losses if support is broken and price moves lower.\u00a0 We believe the shorts, which there are many at this point in time, are about to feel some serious \u201csqueeze pressure\u201d over the next few weeks.<\/p>\n

Visit\u00a0www.TheTechnicalTraders.com<\/u>\u00a0to learn how we can help you find and execute better trading solutions, better research and provide a top-tier solution for active traders.\u00a0 If you like our research and find it helps you, then consider joining our other valued members in supporting our work and taking advantage of our solutions for active traders.\u00a0 Want to know where this market is headed and what to expect throughout the end of this year and beyond \u2013 our members already know what our predictive modeling systems are suggesting for the next 5+ months.<\/p>\n

Our articles,\u00a0Technical Trading Mastery book, and\u00a03 Hour Trading Video Course\u00a0are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today\u2019s competitive markets. Created with the serious trader and investor in mind \u2013 whether beginner or professional \u2013 our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.<\/p>\n

By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com As we start the July 4th\u00a0trading week, it is time to look at the current market setup for signs of future strength or weakness.\u00a0 Yes, there is a lot of outside economic and geopolitical factors at play right now that could cause some major market moves, yet we continue to believe the US […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-129476","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=129476"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129476\/revisions"}],"predecessor-version":[{"id":129477,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129476\/revisions\/129477"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=129476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=129476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=129476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}