S&P 500 Futures Trade Idea

In $E-mini S&P 500 - main 2312(ESmain)$ hourly chart, I saw an interesting trading opportunity. There appears to be a breakout from a consolidation pattern, suggesting potential upward movement. I believe this breakout could have the potential to reach the resistance level in the range of 4394.25 to 4399.50 based on the hourly chart analysis.

Hourly Chart

However, it's essential to take a broader perspective by considering the daily chart as well. Just yesterday, there was a significant breakdown from the trendline support on the daily chart. This raises some caution flags. The current breakout on the hourly chart may be temporary and not necessarily sustainable in the long term.

Daily Chart

Despite this, this is still a compelling trade idea that can yield a nice profit if managed carefully. I recommend implementing a stop-loss strategy at the low of the day to protect your capital in case the market reverses unexpectedly.

In summary, while the hourly chart indicates a potential breakout to the upside, it's crucial to be aware of the daily chart's bearish signals. This trade idea offers profit potential, but traders should exercise caution and have a solid risk management plan in place.

Disclaimer: The levels given are my own opinions and not investment advice. If you choose to follow the trade, do note that you are responsible for your own money. Prioritise your own risk management, expel emotions & focus on your trading plan. [Observation] 

$E-mini Nasdaq 100 - main 2312(NQmain)$ $E-mini Dow Jones - main 2312(YMmain)$ $WTI Crude Oil - main 2311(CLmain)$

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