Emerging Market Futures in Double Bottom Setup with 1350 Target
Trend Analysis
The main view of this trade idea is on the 2-Hour chart. MSCI Emerging Market Index Futures (MME1!) appears to be in a double bottom pattern setup, with the price currently trading around the second low of the setup, around the 1300 price level. Expectations are for MME1! to rally towards the top of the double bottom pattern setup, 3.3% away from current levels.
Technical Indicators
MME1! appears to be a couple candles before the completion of the double bottom pattern setup. The futures contract is currently trading around the fractal moving average. However, MME1! is still below its short (25-SMA) and medium (75-SMA) term moving averages. The RSI recently emerged from oversold levels but is still below 50. The KST is approaching a positive crossover. The technical indicators are illustrating that the double bottom is still in a setup mode and can easily fail.
Recommendation
The recommendation will be to go long at market. At the time of publishing MME1! is trading around 1302. The short- term target price is observed around the 1350 price level, expected resistance of the setup. A stop loss is set at 1288. This produces a risk reward ratio of 3.27.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in MSCI Emerging Market Index Futures ( MME1!).
The main view of this trade idea is on the 2-Hour chart. MSCI Emerging Market Index Futures (MME1!) appears to be in a double bottom pattern setup, with the price currently trading around the second low of the setup, around the 1300 price level. Expectations are for MME1! to rally towards the top of the double bottom pattern setup, 3.3% away from current levels.
Technical Indicators
MME1! appears to be a couple candles before the completion of the double bottom pattern setup. The futures contract is currently trading around the fractal moving average. However, MME1! is still below its short (25-SMA) and medium (75-SMA) term moving averages. The RSI recently emerged from oversold levels but is still below 50. The KST is approaching a positive crossover. The technical indicators are illustrating that the double bottom is still in a setup mode and can easily fail.
Recommendation
The recommendation will be to go long at market. At the time of publishing MME1! is trading around 1302. The short- term target price is observed around the 1350 price level, expected resistance of the setup. A stop loss is set at 1288. This produces a risk reward ratio of 3.27.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in MSCI Emerging Market Index Futures ( MME1!).
Trade closed: stop reached