SPX is on track to test its channel's support line which is substantiated with CM_Ultimat_MA's reversal to red trajectory. This key testing event (at 1950-3980) will determine whether SPX continues its current bullish secondary trend or switches to a bearish stance which started in Jan'22. Most probably MA 200 are to be acted upon as a support level.
So potential developments:
- If the support line holds, traders could consider a long position, with the channel's upper resistance line as the profit-taking target. Await for a confirmation.
- If the price breaks the support line, a potential short position could be opened, with the next significant support level as the profit-taking target. Again await for a confirmation.
- High trading volume on the break could indicate a sustainable new trend.
Remember to exercise risk management, including setting stop losses and limiting position sizes on your trades.
These key developments for SPX is worth closely monitoring.
So potential developments:
- If the support line holds, traders could consider a long position, with the channel's upper resistance line as the profit-taking target. Await for a confirmation.
- If the price breaks the support line, a potential short position could be opened, with the next significant support level as the profit-taking target. Again await for a confirmation.
- High trading volume on the break could indicate a sustainable new trend.
Remember to exercise risk management, including setting stop losses and limiting position sizes on your trades.
These key developments for SPX is worth closely monitoring.