Gap Higher, Balance

balance after gap opening higher
One day balance after gap opening higher

The ES is trading in an eight day balance between 2700.50 and 2741.25. If price opens within Monday’s range potential balance trading scenarios could include: look above or below Monday’s balanced range and accelerate/find acceptance at higher or lower prices, look above/below the range and fail and potentially target the opposite end, or remain balanced within Monday’s range (including slightly above and/or below ). Wednesday brings the release of the FOMC Minutes so remaining in balance would not be unusual ahead of that announcement, barring any major news events.

A break below Monday’s low could target the gap from Friday at 2719.75, although large gaps are rarely filled the day after they are created. There is also an un-visited very wide point of control from the 5/18 profile at 2714.50.

8 day balance
8 day balance

Price acceptance above Monday’s high targets the prior weekly high at 2741.25, and potentially the gap fill from 3/16 at 2752.75.

Monday’s wide point of control could act as either early support or resistance, or a price magnet, on Tuesday.

multi-day trading   range
multi-day trading
range



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