The BEARS were THIS CLOSE to change the trend.
Ok, so SPX is giving a hard time to us, swing traders, and that’s why is good to be prepared, with good studies and a solid trading plan. As I’ve been saying in my last SPX analyses, I’m very skeptical towards SPX, since I don’t believe we have reasons to keep the bullish trend (I’m a little pessimistic here), but it’s also full of bear traps. If you missed my latest analyses, the link to them are below, and I invite you to follow me to keep in touch. My twitter has some interesting content too, check it there and see for yourself!
Now SPX found a support in the “support zone” we draw yesterday, and it did a strong bullish pattern (at least in theory, of course), called Piercing Line. The bears did an attempt to penetrate the support zone, but the bulls pushed them away, and the price closed above the 21 ema. Now, let’s see the hourly chart:
There’s hope for the bears here. The Piercing Line pattern could be just a pullback to the 21 ema, and it could hit the trendline again. Now there’s not much to do but wait for the confirmation tomorrow. If the bullish pattern is triggered SPX may test the 61.8% fib retracement again. But, if the bears win this time, I think it will test the 38.2% retracement instead (which is also a previous top, as you see by the orange line). Let’s see how this battle is going to end.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
Now SPX found a support in the “support zone” we draw yesterday, and it did a strong bullish pattern (at least in theory, of course), called Piercing Line. The bears did an attempt to penetrate the support zone, but the bulls pushed them away, and the price closed above the 21 ema. Now, let’s see the hourly chart:
There’s hope for the bears here. The Piercing Line pattern could be just a pullback to the 21 ema, and it could hit the trendline again. Now there’s not much to do but wait for the confirmation tomorrow. If the bullish pattern is triggered SPX may test the 61.8% fib retracement again. But, if the bears win this time, I think it will test the 38.2% retracement instead (which is also a previous top, as you see by the orange line). Let’s see how this battle is going to end.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
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