Look At This Setup In The E-Minis

  • August 11, 2003
  • Derrick Hobbs

The
S&P e-Mini contract (ES03U) is plugging its way up to a major
Fibonacci price resistance zone, from my perspective as
an active trader.
That resistance zone is from 988 to 994. Two bearish patterns complete
into this zone. A Bearish Gartley (highlighted in red) and a Bearish Butterfly
(highlighted in blue). Also interesting to note is the clearly defined 5-wave
series that is developing into resistance.


 

So how am I trading it?

Tomorrow I’ll be looking for
this contract to test the 988 to 994 zone. Once price touches this zone I’ll be
looking for a candlestick pattern to trigger me short. My stop if triggered
short will be 995.25.

So what if I don’t get
triggered short?

If price rallies above my
resistance zone there is a high likelihood that we run into a momentum situation
and trade above the July 31 high.

Have a great night!

Derrik Hobbs

 


“Fibonacci
for the Active Trader is by far one of the best trading books to come along in a
long time. It deals with specifics in market entry, exits, and stop placement in
a simple, understandable approach. This is a jewel-defined trading plan that
will benefit both the long-term and short-term stock trader. Thank you for
sharing your trading experience and method. Your trading book is one of the best
I’ve read out of 50 and very enjoyable …”
–Daniel G.