Today’s chart shows a strong bearish trend on 
SPX with price comfortably trading below key moving averages—20, 50, 100, and 200 EMA—which confirms that the long-term downtrend is intact. Notably, after an aggressive downward move, the price has retraced to the 20 EMA, presenting a potential buying opportunity.
The pullback appears healthy, and we’re now seeing early signs of a bullish reversal—look for a bullish engulfing pattern or a strong green candle as confirmation. Adding further conviction, the RSI is holding in a neutral zone (around 40-60), indicating that the asset isn’t overextended yet.
Trade Setup:
Entry: Consider entering long on confirmation of a bounce off the 20 EMA.
Stop-Loss: Place your stop just below the 50 EMA or the recent swing low for a tight, controlled risk.
Take Profit: Aim for the next resistance level or a minimum risk-reward ratio of 2:1.
This setup offers a balanced risk profile and capitalizes on the confluence of support from the EMAs and neutral momentum shown by the RSI.
SPX with price comfortably trading below key moving averages—20, 50, 100, and 200 EMA—which confirms that the long-term downtrend is intact. Notably, after an aggressive downward move, the price has retraced to the 20 EMA, presenting a potential buying opportunity.The pullback appears healthy, and we’re now seeing early signs of a bullish reversal—look for a bullish engulfing pattern or a strong green candle as confirmation. Adding further conviction, the RSI is holding in a neutral zone (around 40-60), indicating that the asset isn’t overextended yet.
Trade Setup:
Entry: Consider entering long on confirmation of a bounce off the 20 EMA.
Stop-Loss: Place your stop just below the 50 EMA or the recent swing low for a tight, controlled risk.
Take Profit: Aim for the next resistance level or a minimum risk-reward ratio of 2:1.
This setup offers a balanced risk profile and capitalizes on the confluence of support from the EMAs and neutral momentum shown by the RSI.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.