Easing Inflation Rate Spurs Optimism for a Bullish Trend?
Updated
Hi Realistic Traders. Here's my price action analysis on the S&P 500!
The
SPX has convincingly breached the double bottom, presenting a compelling signal for a potential bullish reversal. The price trajectory exhibits a sustained upward movement, concurrently shaping a continuation pattern recognized as the Descending Broadening Wedge Pattern. As this pattern unfolds, a subsequent breakout from the descending broadening wedge provides robust confirmation of a conceivable upward trajectory toward the specified target area. Beyond the prism of price dynamics, the oscillator has undergone a significant golden cross, adding another layer of confidence to the outlook and signaling the potential for a bullish market trend.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Recent Announcement of the Inflation Data
- In October 2023, the annual inflation rate in the United States decelerated to 3.2%, marking a decrease from 3.7% observed in both September and August. This figure also fell below market forecasts of 3.3%.
- The annual core consumer price inflation rate in the United States, excluding volatile items such as food and energy, exhibited a marginal decline to an over two-year low of 4% in October 2023, down from 4.1% in the preceding month. Contrary to market expectations, which anticipated stability at 4.1%.
-The unexpected deceleration in inflation has fostered the anticipation that the Federal Reserve's assertive tightening cycle may have concluded. This development is instilling optimism for a bullish scenario in the market.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on
SPX ."
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below!
The
SPX has convincingly breached the double bottom, presenting a compelling signal for a potential bullish reversal. The price trajectory exhibits a sustained upward movement, concurrently shaping a continuation pattern recognized as the Descending Broadening Wedge Pattern. As this pattern unfolds, a subsequent breakout from the descending broadening wedge provides robust confirmation of a conceivable upward trajectory toward the specified target area. Beyond the prism of price dynamics, the oscillator has undergone a significant golden cross, adding another layer of confidence to the outlook and signaling the potential for a bullish market trend.It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Recent Announcement of the Inflation Data
- In October 2023, the annual inflation rate in the United States decelerated to 3.2%, marking a decrease from 3.7% observed in both September and August. This figure also fell below market forecasts of 3.3%.
- The annual core consumer price inflation rate in the United States, excluding volatile items such as food and energy, exhibited a marginal decline to an over two-year low of 4% in October 2023, down from 4.1% in the preceding month. Contrary to market expectations, which anticipated stability at 4.1%.
-The unexpected deceleration in inflation has fostered the anticipation that the Federal Reserve's assertive tightening cycle may have concluded. This development is instilling optimism for a bullish scenario in the market.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on
SPX ."Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below!
Note
base breakout: Further confirmation of Bullish BiasNote
Stay above the recent breakout zone, going toward the first target Trade closed: target reached
Finally, the wait is over, hit the first target :)Trade closed: target reached
Dow Jones Made an All-Time High at 5137 Level, surpassing the second target tremendously
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