Trade Idea: Bearish Swing Trade
S&P500 had a strong recovery after wiping out most of last year's gain. Since then price has been in a pullback, where price seems to be trading in a bullish channel. Now price is trading at the topside of the channel, in which price has been struggling to break the current trend. Thus, it indicates a potential move for a bearish reversal. In addition, US-China trade talks came out with no major announcements. Therefore, this could be a potential catalyst for a reversal.
Trade Step-Up:
Scenario One: Price rejects a break from current resistance level. Look for price action to swing to the support level of the bullish trend at around 2530.00 to 2515.00 level.
Scenario Two: Price continues its reversal and breaks the support level of the bullish channel. Where price plunge to fill in the gap made back in January 4th.
S&P500 had a strong recovery after wiping out most of last year's gain. Since then price has been in a pullback, where price seems to be trading in a bullish channel. Now price is trading at the topside of the channel, in which price has been struggling to break the current trend. Thus, it indicates a potential move for a bearish reversal. In addition, US-China trade talks came out with no major announcements. Therefore, this could be a potential catalyst for a reversal.
Trade Step-Up:
Scenario One: Price rejects a break from current resistance level. Look for price action to swing to the support level of the bullish trend at around 2530.00 to 2515.00 level.
Scenario Two: Price continues its reversal and breaks the support level of the bullish channel. Where price plunge to fill in the gap made back in January 4th.