On March 21, ES/SPX has started to form a triangle price pattern.
The apparent characteristics of this triangle price pattern was that, it had higher lows and higher highs. Every dip attempt was significantly bought and price gradually recovered and pushed above the prior all time high. Something happen significant last week - this triangle pattern was broken to the upside.
I have published and article last week and mention about the importance of 'V type price recovery formations' in considering stop loss of open orders.
One of the basic principles of technical analysis is that month long consolidations - or chart formations create month long price movements.
On June 12, almost 4 month long triangle price pattern was broken to the upside and at the moment it is flagging. Markets are preparing for an easy advancement during the low volume summer months.
For this week, it is important for bulls not to lose the control of the pink line which defines the weekly pivot. As long as above, price can advance above ATH, as price already left the triangle pattern.
For bulls the blue line defines 'the must hold' support. Below this line price can create another leg down.
Thank you for reading. Actionable daily trade plans and trade levels are presented in Institution Breaker's private group.
