Bearish Breakdown Setup on SPY | Key Support & Resistance Levels
This is a technical analysis chart of the SPDR S&P 500 ETF Trust (SPY) on a 4-hour timeframe.
Key Observations:
Resistance Zone (Highlighted in Yellow - Upper Region)
The price previously reached this zone and got rejected, indicating strong selling pressure.
The latest rejection at this resistance led to a downward move.
Support Zone (Highlighted in Yellow - Lower Region)
There is a previously established support zone where price has reacted multiple times.
The chart suggests that the price might revisit this level.
Bearish Price Projection (Blue Lines & Arrows)
The chart indicates a bearish trend with lower highs and lower lows forming.
The projection suggests that the price could break the lower support zone and continue declining.
Conclusion:
If the price fails to hold the support level, we could see a further decline.
If there is a reversal at the support level, a possible bounce could occur.
Traders may look for confirmation signals before entering short or long positions.
Key Observations:
Resistance Zone (Highlighted in Yellow - Upper Region)
The price previously reached this zone and got rejected, indicating strong selling pressure.
The latest rejection at this resistance led to a downward move.
Support Zone (Highlighted in Yellow - Lower Region)
There is a previously established support zone where price has reacted multiple times.
The chart suggests that the price might revisit this level.
Bearish Price Projection (Blue Lines & Arrows)
The chart indicates a bearish trend with lower highs and lower lows forming.
The projection suggests that the price could break the lower support zone and continue declining.
Conclusion:
If the price fails to hold the support level, we could see a further decline.
If there is a reversal at the support level, a possible bounce could occur.
Traders may look for confirmation signals before entering short or long positions.
Trade closed: target reached
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.
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.