As the market formed a strong rally last week, breaking out above key resistance levels, investors are wondering if the bullish momentum will continue. With the possibility of a test back down to the 5,600 level looming, traders need to stay vigilant.
Last week’s buying pressure indicated strength from the bulls, but the rally may be reaching a climax. This raises the risk of a pullback to test previous resistance levels. Traders should be cautious, especially if the market forms a bear bar closing on its low.
What to Expect Today
The Globex market showed signs of consolidation overnight, pointing to potential sideways trading at the open. Traders should be prepared for a trading range and exercise patience before making any decisions.
Friday’s Emini Setups
For those looking for entry points, Friday provided some setups worth considering. However, it’s important to note that not all setups will lead to profitable trades. Managing risk is crucial, and traders should be prepared to exit with a small profit or loss if necessary.
Analysis Breakdown:
- The market saw a strong rally last week, but a pullback to 5,600 is likely.
- Bulls showed strength, but a potential climax could lead to a bearish reversal.
- Today’s trading may be sideways, with resistance at last Friday’s high.
- Friday’s setups offer opportunities, but not all trades will be profitable.
- Managing risk and being patient are key to successful trading.