moneymaking
Long

S&P 500: VALID ASCENDING TRIANGLE- CLOSE TO THE BREAKOUT POINT!!

FX:SPX500   S&P 500 index of US listed shares
10 months ago
Hello Traders,

After a steep decline in the FX:SPX500             for the first 4 weeks of the new year, this market has been in a consolidation zone for the past 8 days. After further analysis, we can see an ascending triangle being formed, which is type of a consolidation zone pattern.

In this pattern we have a strong resistance level and a number of higher lows being formed as the buyers try to push the price higher and try to break that key resistance level. As buyers keep pushing price higher, against that strong resistance level, we are very much likely to get a strong breakout to the upside.

There are situations where the resistance level seems to be too strong and the buyers fail to break that level. The key point to keep in mind is that, all we need to watch for is the breakout in EITHER DIRECTION (up or down). One way or another, we can place buy or sell limit orders above (resistance level) or below (slope of the triangle).

The target for this pattern is equivalent to the height of the triangle (depicted by the blue rectangle), which is at 2007.2. Stops would go either below the slope of the triangle for long entry and above the resistance level for short entry.

Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)

Follow me on Twitter as well: moneymaking2016
10 months ago
Comment: UPDATE #1: Hello Traders, we just got a really strong bullish close above the triangle. Time to enter long. All the BEST :)
10 months ago
Comment: UPDATE #1: No valid re-test of broken resistance level, close or lower your exposure as much as possible. Stick with your stop loss levels, don't make the old mistake of moving them around. Stick to the plan :)
10 months ago
Comment: UPDATE #2: Market currently in consolidation zone, be cautious.
IvanLabrie PRO
10 months ago
Agreed, I'm waiting to catch it.
+1 Reply
moneymaking IvanLabrie
10 months ago
Nice, all the best. Will look to long some stocks as well based on this setup. Let's see how it goes :)
Reply
Daniel.B
10 months ago
Nice analysis moneymaking! I'm mostly net long on U.S. equities so I agree with your view! hehe Also keeping my eyes on WMT for another short will post that up later today! All the best =)
+1 Reply
moneymaking Daniel.B
10 months ago
Thank you mate, awesome. WMT short nice, will be good one. Did you saw GOOG gap after better earnings report, damn, that was huge gap. But half of that was gone after the strong drop in oil and stocks :(
+1 Reply
Daniel.B moneymaking
10 months ago
NP bro! Yea it's setting up nicely on the weekly chart! Yea that GOOG gap was crazy haha, I want to add FB to long positions if it has a decent pullback to support
+1 Reply
moneymaking Daniel.B
10 months ago
Cool, I am long on PSX after hearing buffet buying 2.5 million share of it for 200 million dollars. Also long on Dominion resources, based on inverse head and shoulder pattern, which is working pretty well actually, at least for now :)

snapshot
+1 Reply
moneymaking Daniel.B
10 months ago
Didn't bought PSX just on buffet news, trade was based on the long entry signal, that was just as a side note, hehe. No one can trade like buffet :)
+1 Reply
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