The date was Friday May 23. I’d been monitoring my daily charts, refining with the 60-minute, and watching the E-mini S&P 500 futures that I trade expecting them to form a tradeable low.
And futures did just that, creating a low on May 23 that’s still in place! From there, futures traded up into last Thursday's high at 5952.50 before the most recent consolidation. And this recent action fits within the context of my next forecast, here it is: it's for the ES futures to trade up to 6154.00 by this Friday, June 6th. My style of forecasting has a price component and a time component. That’s it.
Now, if you don't know my forecasting techniques in full, don't just go trading blindly on this forecast because I don't have a crystal ball. The market action could change, and the forecast may not be met. What's important to know is that forecasts act like magnets on price, and in this case, it's tugging on the price action to go upwards.
The other thing that supports this bullish forecast is the movement of the RSI Power Zones – my absolute favorite momentum indicator. It's been trending higher since posting the April 21st trough, which aligned with the April 21st Price Low that was really close to the Bull Support Power Zone.
So essentially, I wouldn't be surprised if futures traded higher over the course of this week – not necessarily in a straight line but a steady uptrend. And if the RSI Power Zones did so as well, setting themselves up to extend towards the Bull Resistance Power Zone.
~Hima
PS You’ve got a study guide to help you navigate your trifecta education including forecasting and momentum techniques! Access the free PDF directly (no login required) at himareddy.com/trifectatrader
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