MERRY CHRISTMAS AND A HAPPY NEW YEAR TO ALL MY SPYLOVERS !!!
Two weeks ago, I projected some very common behaviors that candles exhibit after a long rally. If you compare the two types of candles I marked on the left-hand side, notice how candle models "A" and "B" have very different body structures. Candles "A" have a more volumetric medium-sized body, which indicates strength. However, we are not exempt from their natural pullback, which, to complete one trend cycle, broke the structure itself upward.
Candles "B" are smaller than Candles "A," allowing us to distinguish the significant weakness in the uptrend. The price starts to lose momentum, and consequently, we can expect it to take a pause before falling.
After projecting the two scenarios where SPY was positioned two weeks ago, we were able to predict both future movements correctly:
When the price reached historical highs, it paused or consolidated, showing descending candles (see the magenta arrow). Later, a volumetric candle confirmed the drop.
Within the two scenarios, I marked two possible levels where the price would fall. The rebound occurred correctly at the second level, a historical resting zone where the price has been since October.
This analysis is entirely based on price action and historical zones. It's essential to stay alert to institutional and liquidity zones to ensure the most accurate analysis possible.
Now we are in the final week of the year, and historically, markets tend to react bullishly. But the question is: Will it be different this time?
In my opinion: I believe the price can reach new historical highs, as it is demonstrating with strong bullish pressure candles.
At this moment, I think we are at a good support level located at the previous resistance of our entire bullish channel. I believe the price will re-enter the channel and resume the sequence it has been following within the overall bullish structure.
This concludes my analysis of SPY for now. Let's see what the next few days bring as we continue monitoring the market.
If you'd like to see this analysis in English, follow me on TradingView under the username: rockermike111.
Wishing you an excellent 2025 filled with great news and continued growth in your market studies! May your learning progress year after year!
Sending you a big hug and wishing you a Happy 2025!
TRADE SAFE!
Candles "B" are smaller than Candles "A," allowing us to distinguish the significant weakness in the uptrend. The price starts to lose momentum, and consequently, we can expect it to take a pause before falling.
After projecting the two scenarios where SPY was positioned two weeks ago, we were able to predict both future movements correctly:
When the price reached historical highs, it paused or consolidated, showing descending candles (see the magenta arrow). Later, a volumetric candle confirmed the drop.
Within the two scenarios, I marked two possible levels where the price would fall. The rebound occurred correctly at the second level, a historical resting zone where the price has been since October.
This analysis is entirely based on price action and historical zones. It's essential to stay alert to institutional and liquidity zones to ensure the most accurate analysis possible.
Now we are in the final week of the year, and historically, markets tend to react bullishly. But the question is: Will it be different this time?
In my opinion: I believe the price can reach new historical highs, as it is demonstrating with strong bullish pressure candles.
At this moment, I think we are at a good support level located at the previous resistance of our entire bullish channel. I believe the price will re-enter the channel and resume the sequence it has been following within the overall bullish structure.
This concludes my analysis of SPY for now. Let's see what the next few days bring as we continue monitoring the market.
If you'd like to see this analysis in English, follow me on TradingView under the username: rockermike111.
Wishing you an excellent 2025 filled with great news and continued growth in your market studies! May your learning progress year after year!
Sending you a big hug and wishing you a Happy 2025!
TRADE SAFE!
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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.
Related publications
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.