Since my last post upon this market on the 12th the Emini Russell (TFH12) has continued to trade higher as i suggested it would and our retrace buy Bullish Breakout Signal on the Monthly Profile provided a nice winning upside move with the bottom starting at 755.20 and the top at 775.00 a 19.80 point move at $100 a point.
This specific upside leg is referred to as the Bullish Confirmation Wave on the Monthly Profile since TF had already made a bullish breakout and retraced it now has to confirm an uptrend by trading above MR2 775.30 and holding the time filter.
The top of this Bullish Confirmation Wave again was 775.00 which is 3 ticks below the price of MR2. TFH12 encountered selling pressure at this price level and started declining in price towards the open of the overnight market. This selling pressure at the MR2 price level 775.30 suggested that TFH12 was possibly failing to confirm an uptrend, which generates a sell signal within the Zone-Trader Philosophy as we look for TFH12 to revert back to the Zone-Trader Pivot or the Point of Control.
A candle body close that is lower then the low of the prior candle on the Monthly Profile would then confirm that TFH12 failed to establish an uptrend on the Month and that rule was achieved today during the day session.
This specific upside leg is referred to as the Bullish Confirmation Wave on the Monthly Profile since TF had already made a bullish breakout and retraced it now has to confirm an uptrend by trading above MR2 775.30 and holding the time filter.
The top of this Bullish Confirmation Wave again was 775.00 which is 3 ticks below the price of MR2. TFH12 encountered selling pressure at this price level and started declining in price towards the open of the overnight market. This selling pressure at the MR2 price level 775.30 suggested that TFH12 was possibly failing to confirm an uptrend, which generates a sell signal within the Zone-Trader Philosophy as we look for TFH12 to revert back to the Zone-Trader Pivot or the Point of Control.
A candle body close that is lower then the low of the prior candle on the Monthly Profile would then confirm that TFH12 failed to establish an uptrend on the Month and that rule was achieved today during the day session.
ALERT: Look to sell upside retrace looking for key resistance at 765.30, 767.30, and 769.30 price areas. Zone-Trader Philosophy suggests TFH12 downside target will be 747.60 to 745.80 (Monthly ZT-Pivot) price area.
If and when TFH12 reaches the suggested target expect support at those prices and keep an eye out for possible reversals back to the upside. TFH12 is still attempting to revert to the Zone-Trader Pivot on the Yearly Profile at 797.00 and the Quarterly Profile has made a Bullish Breakout suggesting that TFH12 will take at least one more leg to the upside.
The low of the prior week was 742.60, which is lower then the proposed target. If TFH12 stays above this price level, it will maintain the current uptrend and continue to revert towards the Zone-Trader Pivot on Yearly Profile 797.00.
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