Trend Line Congestion (Emini 135 minute)
The Emini rose 10.25 points today to close at 1,282.00. We got the cyclical low confirmations on the daily and 135 minute charts, expected from yesterday’s analysis. But today’s volume was quite weak at around 1.2 million contracts traded.
The chart below shows we’re in a Congestion Zone (white price bars generated by Better Trend Line indicator) and stuck between rising and falling trend lines. Moves out of Congestion Zones tend to be large so the next couple of days should be interesting.
For the upper trend line to be broken decisively and a new up trend to resume I’m looking for large volume confirmation. I’ll also be following the Emini trading overnight – sometimes the Professionals like to push the market up to test the strength of selling above resistance, in this case around the 1,285 level.
Good luck with your Emini trading.