S&P 500: VALID ASCENDING TRIANGLE- CLOSE TO THE BREAKOUT POINT!!
Updated
Hello Traders,
After a steep decline in the
SPX500 for the first 4 weeks of the new year, this market has been in a consolidation zone for the past 8 days. After further analysis, we can see an ascending triangle being formed, which is type of a consolidation zone pattern.
In this pattern we have a strong resistance level and a number of higher lows being formed as the buyers try to push the price higher and try to break that key resistance level. As buyers keep pushing price higher, against that strong resistance level, we are very much likely to get a strong breakout to the upside.
There are situations where the resistance level seems to be too strong and the buyers fail to break that level. The key point to keep in mind is that, all we need to watch for is the breakout in EITHER DIRECTION (up or down). One way or another, we can place buy or sell limit orders above (resistance level) or below (slope of the triangle).
The target for this pattern is equivalent to the height of the triangle (depicted by the blue rectangle), which is at 2007.2. Stops would go either below the slope of the triangle for long entry and above the resistance level for short entry.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
After a steep decline in the
SPX500 for the first 4 weeks of the new year, this market has been in a consolidation zone for the past 8 days. After further analysis, we can see an ascending triangle being formed, which is type of a consolidation zone pattern. In this pattern we have a strong resistance level and a number of higher lows being formed as the buyers try to push the price higher and try to break that key resistance level. As buyers keep pushing price higher, against that strong resistance level, we are very much likely to get a strong breakout to the upside.
There are situations where the resistance level seems to be too strong and the buyers fail to break that level. The key point to keep in mind is that, all we need to watch for is the breakout in EITHER DIRECTION (up or down). One way or another, we can place buy or sell limit orders above (resistance level) or below (slope of the triangle).
The target for this pattern is equivalent to the height of the triangle (depicted by the blue rectangle), which is at 2007.2. Stops would go either below the slope of the triangle for long entry and above the resistance level for short entry.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
Note
UPDATE #1: Hello Traders, we just got a really strong bullish close above the triangle. Time to enter long. All the BEST :)Note
UPDATE #1: No valid re-test of broken resistance level, close or lower your exposure as much as possible. Stick with your stop loss levels, don't make the old mistake of moving them around. Stick to the plan :)Note
UPDATE #2: Market currently in consolidation zone, be cautious.
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