S&P500 LONG? Possible Falling Wedge
Updated
SP500 potentially creating a falling wedge reversal pattern on the daily timeframe . Caution is advised as there is still some potential to the downside towards strong support around 430 range. Looking for a double bottom reversal pattern above 420-430 and bounce above the 200MA then move back towards the ATH .
If it breaks below previous low approx 420 range the idea is invalidated and we are going lower. Otherwise, the SPY has a tendency to create a double bottom before moving higher.
On the upside we have strong resistance at 450-460, potential to chop in between support and resistance areas as the market reacts to interest rate hikes over the next few months. Break and close above 460 with volume can be bullish .
Descending resistance on RSI should be broken to indicate sign of reversal trend with volume .
If it breaks below previous low approx 420 range the idea is invalidated and we are going lower. Otherwise, the SPY has a tendency to create a double bottom before moving higher.
On the upside we have strong resistance at 450-460, potential to chop in between support and resistance areas as the market reacts to interest rate hikes over the next few months. Break and close above 460 with volume can be bullish .
Descending resistance on RSI should be broken to indicate sign of reversal trend with volume .
Note
Looking for a possible bounce, Nasdaq looks like it still has some room to move down. USA war tensions may bring us slightly lower if things escalate. My lower targets are 415. If it breaks below, trade would be exited a new position will be re-considered.Trade active
Currently averaging into my trade, using approx 10% capital to start building my position. Opened a long today at approx. 412, only time will tell if there is any strength moving upwards. If there is more escalation and global tensions, along with SPY retracement my lower targets marked on the chart are approx 404, and then my worst case situation 380-390.
Note
Ukraine/Russia updates from the whitehouse seem to be escalating slightly, however the reaction so far has not been as extreme as assumed. Seems like the market is liking that. Added slightly to my positions in APPL, TSLA, ABNB.
If we can reclaim 430, and move above 450, we may have more bullish momentum to reverse.
Note
We have large support here with a nice reaction. I have scaled into my positions looking to ride this up to resistance levels. Among other things, the world is a mess. My thoughts and prayers are with all of the innocent people who are suffering in Ukraine. Leave a prayer and leave them in your thoughts., Love your brothers, love your sisters. May god open his hands and lead the people of Ukraine to freedom.
Trade active
Looking for a break of descending resistance, SPY is looking good so far. FED talks and less aggressive tightening measures provided the market some good news.Note
Last nights close gave us a higher low than the last 2 two weeks. Looks like we may have caught the bottom for now. RSI bullish divergence still in tact. Let's ride this bad boy back up!Note
Falling wedge breakoutTrade active
falling wedge confirmation? A restest of the downward sloping resistance. Added to position.Trade closed: target reached
Bounce up to 460 was beautiful
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