SPX Analysis by Deno Trading: Key Levels to Watch For
My Take:
Looking at the 4-hour chart of the S&P 500 Index, it's clear that we're approaching a critical juncture. The price recently rallied up to the $5,620 - $5,630 resistance zone, which has been a significant barrier in the past. However, this level has proven to be tough for the bulls to break through, and we're now seeing signs of potential exhaustion.
Key Levels:
Resistance:
$5,620 - $5,630: This is the zone where the price is currently facing resistance. It’s a crucial area to watch because a failure to break above it could result in a pullback.
Support:
$5,480 - $5,440: If we see a rejection from the current resistance, I'm expecting the price to retrace towards this support zone. This area has acted as a strong floor in the past, and it's likely where buyers might step in again.
Trendline Support:
The upward trendline, originating from the lows earlier this year, is still intact. This trendline could provide additional support around the $5,280 level if the price breaks through the aforementioned support zone.
Expectations:
Pullback Potential:
Given the current price action, I wouldn’t be surprised to see a pullback from this resistance zone. The first area I'll be watching for potential support is the $5,480 - $5,440 zone. A break below this could bring us down to test the trendline around $5,280.
Continuation of the Uptrend:
If the bulls manage to push through the $5,620 - $5,630 resistance zone, we could see a continuation of the uptrend with a possible target towards $5,700 and beyond. But for now, I’m leaning towards the possibility of a short-term pullback before any further upside.
Final Thoughts:
Right now, I’m closely watching how the price reacts around this resistance zone. A pullback could offer a good buying opportunity, especially if it holds above the $5,480 - $5,440 support area. On the other hand, a strong breakout above $5,630 would signal that the bulls are in control and could push the market to new highs.
This is a video coverage of an analysis that I did yesterday. Stay Positive!
Looking at the 4-hour chart of the S&P 500 Index, it's clear that we're approaching a critical juncture. The price recently rallied up to the $5,620 - $5,630 resistance zone, which has been a significant barrier in the past. However, this level has proven to be tough for the bulls to break through, and we're now seeing signs of potential exhaustion.
Key Levels:
Resistance:
$5,620 - $5,630: This is the zone where the price is currently facing resistance. It’s a crucial area to watch because a failure to break above it could result in a pullback.
Support:
$5,480 - $5,440: If we see a rejection from the current resistance, I'm expecting the price to retrace towards this support zone. This area has acted as a strong floor in the past, and it's likely where buyers might step in again.
Trendline Support:
The upward trendline, originating from the lows earlier this year, is still intact. This trendline could provide additional support around the $5,280 level if the price breaks through the aforementioned support zone.
Expectations:
Pullback Potential:
Given the current price action, I wouldn’t be surprised to see a pullback from this resistance zone. The first area I'll be watching for potential support is the $5,480 - $5,440 zone. A break below this could bring us down to test the trendline around $5,280.
Continuation of the Uptrend:
If the bulls manage to push through the $5,620 - $5,630 resistance zone, we could see a continuation of the uptrend with a possible target towards $5,700 and beyond. But for now, I’m leaning towards the possibility of a short-term pullback before any further upside.
Final Thoughts:
Right now, I’m closely watching how the price reacts around this resistance zone. A pullback could offer a good buying opportunity, especially if it holds above the $5,480 - $5,440 support area. On the other hand, a strong breakout above $5,630 would signal that the bulls are in control and could push the market to new highs.
This is a video coverage of an analysis that I did yesterday. Stay Positive!
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