🖼 Daily Technical Picture 📈
➤ If you ever doubted the effectiveness/importance of support and resistance levels/zones, I think that has been put to bed by today's price action in the S&P500 equity index.
➤ All you need is to look at the price action in the past few days. Price has tried valiantly on multiple occasions to overcome the resistance zone. Today saw the ultimate failure.
➤ However, failures like these are not always full gone conclusions. In my analysis of such situations in the past, many times prices have held on to re-ignite the bull charge. The probability of this happening is certainly well below 50% but we shouldn't dismiss it.
➤ At European equity market close I was able to add short positions to hedge my initial long exposure. This did help to offset the majority of the loss. At close of US trading, I exited the long positions and entered small short positions. Portfolio is net short with -34% exposure. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: Bears are back in charge but it's not too late for the Bulls to strike back.
➤ If you ever doubted the effectiveness/importance of support and resistance levels/zones, I think that has been put to bed by today's price action in the S&P500 equity index.
➤ All you need is to look at the price action in the past few days. Price has tried valiantly on multiple occasions to overcome the resistance zone. Today saw the ultimate failure.
➤ However, failures like these are not always full gone conclusions. In my analysis of such situations in the past, many times prices have held on to re-ignite the bull charge. The probability of this happening is certainly well below 50% but we shouldn't dismiss it.
➤ At European equity market close I was able to add short positions to hedge my initial long exposure. This did help to offset the majority of the loss. At close of US trading, I exited the long positions and entered small short positions. Portfolio is net short with -34% exposure. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: Bears are back in charge but it's not too late for the Bulls to strike back.
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice