Ironman8848

SP500 MF-H4-POTENTIAL DOUBLE TOP IN PROGRESS !

CME_MINI:ES1!   S&P 500 E-mini Futures
Following the nice rally seen over the last couple of days, recent price action triggered a potential double
top formation in progress
, coupled with a RSI bearish divergence and last but not least, the last H4 candle is
showing also a BEARISH ENGULFING PATTERN.

Therefore, upcoming candle price action should be watch at very carefully as a failure to recover and close at least
above the middle level (@ 4'574) of the last black candle or better above the former high, which would trigger respectively,
either a PIERCING LINE PATTERN or even better a BULLISH ENGULFING PATTERN,,would be the second signal
of a trend reversal calling for lower level towards :

1) 4'535
2)4'515-4'510 (H4 cluster support)
3) 4 hours clouds
4) 4'442.50 ( double top trigger level & H4 clouds bottom

A breakout of the 4'442.50 level would confirm the double top , targeting 4'295.25 or a retest of former congestion support seen at the end of January !

Globally, watch the 4 hourly clouds as the major support area and watch at the daily clouds (in overlay) as the major resistance
area in this 4 hour/1 day time frame.


As usual, monitor closely price action in shorter intraday time frame which will help you to detect early signal(s) in order to validate or invalidate
the implications previously mentioned.

Have a nice trading day

Ironman8848 & Jean-Pierre Burki

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