Today, we will take a look at the S&P500 Index on a quick review.
The price has been on consolidation for more than a month. A few days ago, it made contact with a relevant dynamic support resistance level where we saw a clear rejection. If we have a bullish perspective on this, assuming that what we are looking at on the chart Is a regular correction during a bull market, then this is one way to develop setups.
What we want to see is first a Breakout; from there, we can wait for the retest of the broken structure, and we can develop setups on that structure, as you can see in the example below the chart. However, we can also wait for the breakout of the small retest and trade the fractal retest of it, which increases the risk-reward ratio while increasing the odds of a stop loss. Consider all these possible alternatives.
At the moment, we have not defined the exact way we want to trade this, but it may be one of the two options we mentioned before.
Let us know what's your view and chart in the comments.