Long 1D1 with low conviction
Market is forming a possible double bottom reversal pattern.
Only when price surpasses $0.330 will this reversal pattern be confirmed.
$0.330 is also a strong resistance level found twice via:
- Descending trendline resistance
- Double bottom neckline
Should market break above $0.330, we can expect to see...
The Dow is currently rejecting significant trend lines on the weekly time frame and we are witnessing decreasing volume from a weekly perspective also.
As many of you know who follow me, these trade set ups are what I look for as it allows me to set up a good risk:reward ratio in my trade plan with significant price action changes having to occur to stop my trade...
o Trend is clear
o price never broke blue line till...
o on the peak it broke blue line and closed
below the brown line
o Sell trigger would be on that candle
o Since bearish engulfing is happening
it's confluence with the trade
Technical Analysis and Outlook
The SPX index after continuously moving steadily to higher completed its Inner Index Rally 2840 as projected on March 2 chart analysis, as relatively weak standing Key Res 2814 has been obsoleted in the meantime - there are no major resistance points at this time - The next intermediate outcome is Inner Index Rally 2880.