SP500 - Approaching Resistance. Short Opportunity
I started out showing the weekly chart. It shows a trendline (red line) which has respected candle close prices on the weekly chart.
1) You can see it acted as resistance from the price rebound after the initial selloff Jan 2018. Price then took a look above, but failed.
2) It held as resistance, price reversed lower.
3) Bulls were able to break above this line, but unable to sustain support. Test of channel resistance produced a large bearish engulfing candle back through support.
4) Bulls attempt to break above a second time, still unable to establish support. Bears pushed price back below support, and produce a lower high.
Last week bulls stepped up to defend support. Weekly candle closed with a long lower wick.
Price is now approaching a couple resistance levels which look like decent short opportunities imo.
Watching to see if price is rejected on retest of the red trend-line.
I will post hourly chart in the comments. It shows a more clear picture of a consolidation zone, with evidence of price breaking lower and entries I'll be looking to sell.
1) You can see it acted as resistance from the price rebound after the initial selloff Jan 2018. Price then took a look above, but failed.
2) It held as resistance, price reversed lower.
3) Bulls were able to break above this line, but unable to sustain support. Test of channel resistance produced a large bearish engulfing candle back through support.
4) Bulls attempt to break above a second time, still unable to establish support. Bears pushed price back below support, and produce a lower high.
Last week bulls stepped up to defend support. Weekly candle closed with a long lower wick.
Price is now approaching a couple resistance levels which look like decent short opportunities imo.
Watching to see if price is rejected on retest of the red trend-line.
I will post hourly chart in the comments. It shows a more clear picture of a consolidation zone, with evidence of price breaking lower and entries I'll be looking to sell.
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