Emerging Market Futures Positioned to Move Towards 1100
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Trend Analysis
The main view of this trade idea is on the 4-Hour Chart. The Emerging Markets Index Future (MME1!) appears to be in a descending triangle pattern setup. The support line is observed around the 1210 level while the resistance line was created with the lower highs of 1332, 1305 and 1295. Expectations are for a breakdown in MME1! around 1210 which should take the security lower towards 110. A negation of this chart pattern setup will be seen if MME1! Rallies towards 1300.
On the Daily chart MME1! Is making a leg lower towards 1210 support. The overall trend is down.
Technical Indicators
The RSI is currently less than 50 with the KST in a sell mode. The short (50-MA), medium (100-MA) and long (200-MA) fractal moving averages are above MME1!’s price. The Mas also have had negative crossovers over the last month. These are bearish signs from the technical indicators.
Recommendation
The recommendation will be to go short at market, with a stop loss at 1300 and a target of 1100. This produces a risk/reward ratio of 1.41.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to MME1!.
The main view of this trade idea is on the 4-Hour Chart. The Emerging Markets Index Future (MME1!) appears to be in a descending triangle pattern setup. The support line is observed around the 1210 level while the resistance line was created with the lower highs of 1332, 1305 and 1295. Expectations are for a breakdown in MME1! around 1210 which should take the security lower towards 110. A negation of this chart pattern setup will be seen if MME1! Rallies towards 1300.
On the Daily chart MME1! Is making a leg lower towards 1210 support. The overall trend is down.
Technical Indicators
The RSI is currently less than 50 with the KST in a sell mode. The short (50-MA), medium (100-MA) and long (200-MA) fractal moving averages are above MME1!’s price. The Mas also have had negative crossovers over the last month. These are bearish signs from the technical indicators.
Recommendation
The recommendation will be to go short at market, with a stop loss at 1300 and a target of 1100. This produces a risk/reward ratio of 1.41.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to MME1!.
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