SPX: What does it take to reverse? Watch these technical points!
Hello traders and investors! Let’s see how the index is doing today!
First, it is back to our “neutral zone”, but the reaction since the last bottom was quite strong, and we broke the 21 ema as well. Now, it seems it has only to break the resistance at the 3,979 area in order to fully reverse and enter bull territory.
If it drops again, that’s expected, but if it loses the 21 ema again, it’ll lose strength, and the bullish bias will get weaker again. Either way, we don’t see a clear bullish structure in the 1h chart yet, like a bullish reversal candlestick/chart pattern (just a V-shape recovery which is taking us to the resistance at 3,979, but that doesn’t mean much).
Let’s take a look at the daily chart for more clues:
Unlike the 1h chart, here we see some important reaction, it is not much, but might be the beginning of a bullish movement.
Last Friday we saw this Hammer candlestick pattern, closing above the previous support at 3,858 after a brief intra-day violation, aka false breakout. The size of the shadow under the candlestick’s body was impressive. Usually this indicates a lot of buy force, in an attempt to reverse, and this is our first bullish reversal sign.
Today’s candlestick is bullish, which is good, but the next thing the index must do in order to reverse is to break the purple trend line. The trend will remain bearish as long as we stay under this line. If we do break it, the next resistance will be the red line at 4,090.
If the index breaks the 4,090 it’ll trigger a Double Bottom chart pattern, a reversal pattern that could lead us to the 4,300, at least. This is what it takes for the index to reverse, and we must watch these key points closely from here.
I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my daily analyses!
First, it is back to our “neutral zone”, but the reaction since the last bottom was quite strong, and we broke the 21 ema as well. Now, it seems it has only to break the resistance at the 3,979 area in order to fully reverse and enter bull territory.
If it drops again, that’s expected, but if it loses the 21 ema again, it’ll lose strength, and the bullish bias will get weaker again. Either way, we don’t see a clear bullish structure in the 1h chart yet, like a bullish reversal candlestick/chart pattern (just a V-shape recovery which is taking us to the resistance at 3,979, but that doesn’t mean much).
Let’s take a look at the daily chart for more clues:
Unlike the 1h chart, here we see some important reaction, it is not much, but might be the beginning of a bullish movement.
Last Friday we saw this Hammer candlestick pattern, closing above the previous support at 3,858 after a brief intra-day violation, aka false breakout. The size of the shadow under the candlestick’s body was impressive. Usually this indicates a lot of buy force, in an attempt to reverse, and this is our first bullish reversal sign.
Today’s candlestick is bullish, which is good, but the next thing the index must do in order to reverse is to break the purple trend line. The trend will remain bearish as long as we stay under this line. If we do break it, the next resistance will be the red line at 4,090.
If the index breaks the 4,090 it’ll trigger a Double Bottom chart pattern, a reversal pattern that could lead us to the 4,300, at least. This is what it takes for the index to reverse, and we must watch these key points closely from here.
I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my daily analyses!
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👉 Join the 5%: thefinancehydra.com/
💲💲 Project 5%: + 104%
🔹 S&P500: +35%
💪 Public track record.
