Bull Flag Compression

ES has been compressing for a couple of days now, forming a likely bull flag for the next leg higher. That may have made a low overnight or may have a bit lower to go before the next leg up begins. A break and conversion to support of the current short term high at 2863.75 ES should clear the path to the all time high retest. Partial Premarket Video from theartofchart.net – Update on ES, NQ:

On SPX, main channel resistance is now in the 2888 area and may be the target for the next leg up, after which we expect to see a decent retracement with an obvious target at a test of main channel support, currently in the 2765 area but obviously rising. After that we might see a test of longer term trendline resistance on SPX in the 2950-3000 area to make a more serious high. SPX 60min chart:

Some announcements today. We are doing our monthly free public Chart Chat on Sunday running through the usual 35 to 40 instruments over a very wide range of markets and, if you’d like to attend, you can register for that on our August Free Webinars page. We are also running another Trading Academy Boot Camp soon and that is starting September 4th. The first two were very well received and you can see testimonials from that as you scroll down on our testimonials page. If you’re interested in attending you can find out more and register for that on this page here.

In the very short term though we are doing a free public webinar after the close tonight looking at trades on our directional options service Paragon Options, currently up about 12% after just under seven weeks so well on course for the minimum 60% per annum return that we are looking for. If you’d like to attend, you can also register for that on our August Free Webinars page.

Written by:

Richard Chappell

Jack is a 20 year retail trading veteran and co-founder of The Art Of Chart. He started his blog at channelsandpatterns.net in 2010 and since has published tens of thousands of charts looking at hundreds of trading instruments across most tradeable markets, doing original work mainly in the areas of trendlines, patterns and divergences. At The Art Of Chart Jack has taught trading skills, technical analysis, and the discipline and trader psychology that allow those to be used effectively in trading.

09th Aug 2018

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