SPY - pullback before upward move, short term idea
Hi Everyone,
An update on the SPY charts
Bulls have been full throttle and enthusiasm has been at its peak. A quick look on the charts, after a strong uptrend, we can see a Bearish engulfing pattern that has developed on the daily chart, this could be a sign of shifting hands of powers from bulls to the bears, at least momentarily. Also RSI already near overbought zone, a good case to go short for the short term.
On daily charts, next support level is 327.31 and 325.10 levels
On 4hr charts, support at 327.37 and 325.09
On shorter timeframe, 30m charts, support at 327.36, 326.81 and 325.19
Trust this helps
If you like what you see, share a thumbs up!
Cheers
An update on the SPY charts
Bulls have been full throttle and enthusiasm has been at its peak. A quick look on the charts, after a strong uptrend, we can see a Bearish engulfing pattern that has developed on the daily chart, this could be a sign of shifting hands of powers from bulls to the bears, at least momentarily. Also RSI already near overbought zone, a good case to go short for the short term.
On daily charts, next support level is 327.31 and 325.10 levels
On 4hr charts, support at 327.37 and 325.09
On shorter timeframe, 30m charts, support at 327.36, 326.81 and 325.19
Trust this helps
If you like what you see, share a thumbs up!
Cheers
Comment:
Wow...as expected, markets opened lower (the bearish engulfing also suggested a lower high than previous close and boy, did the bears crash the gates open with open right below our multiple support levels. Interesting to note, bulls try to gain the momentum back in their zone but our establishes 2nd support ($325.09) level becoming a resistance zone . Markets bounced back to these levels but was shot down to close at 323.50 levels. Going ahead, this level will continue to be a resistance zone . Look out for more
Trade closed: target reached:
Lets look at more data , and take the next step. Look out for my new post
