S&P 500 IndexLong
SPX quick trade idea
Updated
I previously thought we were going to see the price plummeting after the rising wedge was broken, instead, the price decelerated. I did not enter a trade there as the volume was quite strong on the green candles after the rising wedge was broken and because the price traded in a range after that. I then thought we might be seeing a double top pattern forming, but now the price looks like it is trading at a range nicely.
I am only going to enter long trades here. I decided to give up my short bias, for the mean time at least, as right now it seems like the market has priced in all the expected bad news and is just waiting for good news to come out to go up again.
I see a very clear cup and handle pattern with the price above the 200MA line. I think once this consolidation is broken, we will see SPX rising to the previous resistance of around 2890. This week will be perfect for this to happen.
Trading plan
Entry: Buy when price breaks the current resistance and bounces off of it to confirm it.
Stop loss: a little below current resistance
Exit: at 2890
I am only going to enter long trades here. I decided to give up my short bias, for the mean time at least, as right now it seems like the market has priced in all the expected bad news and is just waiting for good news to come out to go up again.
I see a very clear cup and handle pattern with the price above the 200MA line. I think once this consolidation is broken, we will see SPX rising to the previous resistance of around 2890. This week will be perfect for this to happen.
Trading plan
Entry: Buy when price breaks the current resistance and bounces off of it to confirm it.
Stop loss: a little below current resistance
Exit: at 2890
Trade closed: target reached
Probably a bit too early but the goal of this analysis was to be a day trade so I gotta stay disciplined plus I don't want to leave it to risk the post market earnings coming out.
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