After putting in a retracement to retest previous structure lows the S&P is now trading at the right should of what may turn out to be a head and shoulders bottom pattern.
The head and shoulders is a classic reversal pattern & IF completed I would predict that we're likely to retest the previous structure highs which line up at a one - to - one measured move & a ...
- Completed the head and shoulders pattern with a nice break below the neckline
- Price has reverted back to that neckline to retest that price level
- Sellers are clearly present as we have not been able to break above the 1.15 even handle
- Price has not closed above 1.148 handle
- The bullish engulfing candle failed to close with price within a few pips of the ...
Trading Bias: Short
Technical Strategy: Re-test of broken rising wedge
Fundamental Strategy: Shift to risk-on sentiment with news regarding US-China trade relations
*IF you do not know how to trade using this analysis please send me a PM for help*
I am currently looking for indication the next move will take us to the 61.8, possibly 78.6 fib
The 61.8 fib lines up with current level and size of earlier candle 3240 - 3470
Looking at volume profile I have orders to add long if we retouch the 3240 support or wick to 0 fib at 3200
I already have a short open from 36 so will keep a close stop on long, ...
A potential reversal may happen if the neckline/50 EMA/trend line (orange) is broken. The neckline is in an odd spot though, at the bottom of a Monthly Resistance area (pink zone) as well as headed toward a pretty respected Daily Resistance (white line), as it has 6 major rejections since May. I'm rather new and still learning to trade, so if you've got any tips ...
Retest Strategy: GBPNZD (Not EMA)
Checklist for Long
1. Retest at support -
2. Support holds -
3. Reversal Candlestick Pattern -
4. Long lower Shadow, Short upper Body -
5. Bullish Doji -
100 pip TP based on 4-hr chart
Could set TP to 50 pips for shorter timeframe (1-hr chart)
The support that held this market for a year has now broken.
Is it game over and all hope lost for the bulls?
Almost, but not yet.
These markets are tricky, and they don't usually let something that looked like a little too obvious "bottom" at 5800-6100 area to actually be the bottom.
Larger players know that there were lots of stop loss orders just below those ...
A couple of wedges still in tact
As usual I was asleep when the drop happened, UTC+10 is a pain in my A$$.
Any way my position here is a possible retest
Hopefully 6k, I don't think we will get back to where we came from.
If the play continues short then I am looking at previous order block around 48
If we wait long enough for shorts to build and get some fomo ...