Welcome to the video update for Monday, January the 17th. Monday is a US holiday so expect light trading and early closes. 11:30am est will conclude the electronic session for the ES and the other stock index futures. For other markets please check your exchange. First chart is the weekly EUR/USD pair where last week price opened near its low and closed near its high. This week watch the price action IF price moves higher. Expect some resistance in the 1.3550 area which would put price in the sell zone. Trader Rick looks next at the 60 min chart where price is in a trading zone in an uptrend. Look where support comes in.
The daily continuation gold chart is next with price retesting the D leg of an ab=cd pattern. Note the next level of support IF price moves down to the 1.27 fib extension.
Trader Rick discusses the crude market looking at the weekly chart where price put in an inside candle this past week. Note that price is up against the 1.27 fib extension at 92.60 area. A pullback in to the buy zone will create a possible buying opportunity.
Moving to the stock indexes, first chart up is the S&P cash weekly where this past week completed the 5th straight trading completely outside the upper keltner. Where is the next resistance level? A good large timeframe to watch for the ES is the 2 bar per day. This would be in addition to the 60 min timeframe. Note how well the 2 bar per day timeframe provided support going back to early December. Current support comes in at the 1274 to 1276 area. This type of market structure suggests avoiding countertrend setups unless you are an experienced scalper. Avoid the short side until the bullish pattern is broken!
Final chart is the 5 min ES day session only. This is a good chart to study because it was a trend day up this past Friday. Market opened near its low and closed near its high.
Good trading!
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