Good afternoon traders,
Not a bad time to flip bullish here in the short-term.
SPY left a trail of gaps that'll likely lead back into an area of supply in the coming week.
I am expecting trading volatility at each price increment of $5, notably at SPY's current level of 375, followed by 380, 385, up until my target of 400.
From there, the risk to reward will favor the downside. At most, the market sees 420. However, is likely wishful thinking to believe progress toward T5 target of 460 will occur.
So we must pay attention to price in the opposite direction.
Our current 'Key Level' doubles as the highest price of the opening candle of 2021. Thus, we are beginning to dip our toes into breaking into 2020 price action.
... this will without a doubt spook the market.
I have my eyes set on levels T3 (359.84) and T4 (339.72) targets, notably T4 which doubles as the daily chart's Pre-COVID high... this may be among the most important levels to watch for moving forward.
Should the market see a bounce, we have to ask ourselves what's different this time? More than likely, it won't be enough to avoid the major downside risk.
Agree, disagree? Feel free to discuss in the comments!
Thank you all for stopping by.
HOW LEVELS ARE CALCULATED: This analysis derives from a strategy I've put together over the past few months, based mostly on using the Bollinger Bands to generate future key market levels. All support and resistance levels are calculated based on the volatility of a specified time / price range. In this example, the base S&R points used are marked in blue. A video explanation can be provided at some point if there's interest. . it is a relatively simple strategy that has yielded surprisingly accurate key levels, well out into the future.
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Please leave a 'LIKE' if you found value in the analysis!
Not a bad time to flip bullish here in the short-term.
SPY left a trail of gaps that'll likely lead back into an area of supply in the coming week.
I am expecting trading volatility at each price increment of $5, notably at SPY's current level of 375, followed by 380, 385, up until my target of 400.
From there, the risk to reward will favor the downside. At most, the market sees 420. However, is likely wishful thinking to believe progress toward T5 target of 460 will occur.
So we must pay attention to price in the opposite direction.
Our current 'Key Level' doubles as the highest price of the opening candle of 2021. Thus, we are beginning to dip our toes into breaking into 2020 price action.
... this will without a doubt spook the market.
I have my eyes set on levels T3 (359.84) and T4 (339.72) targets, notably T4 which doubles as the daily chart's Pre-COVID high... this may be among the most important levels to watch for moving forward.
Should the market see a bounce, we have to ask ourselves what's different this time? More than likely, it won't be enough to avoid the major downside risk.
Agree, disagree? Feel free to discuss in the comments!
Thank you all for stopping by.
HOW LEVELS ARE CALCULATED: This analysis derives from a strategy I've put together over the past few months, based mostly on using the Bollinger Bands to generate future key market levels. All support and resistance levels are calculated based on the volatility of a specified time / price range. In this example, the base S&R points used are marked in blue. A video explanation can be provided at some point if there's interest. . it is a relatively simple strategy that has yielded surprisingly accurate key levels, well out into the future.
<hr>
Please leave a 'LIKE' if you found value in the analysis!
Comment:
Well we're just about there. I think the market still has a bit of hopium left in the tank (potentially to 420), but ultimately the R:R for shorts is rising following this rally's near-conclusion.
Trade active