Wednesday 11 April 2007

Emini Daily Update: Support at Trend Line

The Emini closed down 7.00 points at 1,448.75 on Wednesday. We got the expected downward break today. Range was above average at 13.50 points and so was volume at 1.2 million contracts traded.

The 1,458 level again proved to be resistance and was in fact the high for the day. It looks like the gap created from last February's fall won't be closed for the time being, as we failed to hit the 1,460 low from 26 February 2007.

Emini Trend Line Image

The chart above shows how the rising trend line provided support at 1,444.50 for today's downward move. This trend line will probably be important going forward. Any downward trend line breaks on heavy volume will signal lower Emini prices. Check out previous articles on using TradeStation to automatically plot trend lines here.