Monday, December 01, 2008

3 Pivot Point, Base & Break - S&P Eminis

ES had several pivots into this level early last week. Each successful test strengthened this area as key support. Profit taking usually brings us back to key support. We tested support midday and broke out EOD. I've mapped out the remaining supports going into tomorrow. If all of these fail, last week's bounce will likely be another failed bear market bounce. The last remaining hope will be for a higher low.

CNQ was a head fake lower, which carved out a bullish morning star reversal pattern. I placed my Fibonacci retracement lines from the last leg down and I was looking for a 50%-62% retracement. Partial at 50% and exit balance at 62%. The downsloping 50 SMA acts as resistance.

On the wider timeframe of CNQ (TSX), we see 2 pivots at the former gap down level. Let's see if the third test will hold or set up a shorting opportunity tomorrow.

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