Pattern Identified:
On the chart provided (originally a 5-minute chart), a descending triangle is observed between points (A), (B), (C), (D), and (E). If we group the movements on a 15-minute timeframe, the pattern would still be relevant, but with less noise and more consolidated candles.
Point A: Initial high around 5567.3, marking the start of the downtrend.
Point B: Initial support of the triangle, near 5520.1.
Point C: Descending resistance of the triangle, showing a price compression.
Point D: Lower support of the triangle, also near 5520.1.
Point E: A bearish breakout below D is confirmed, with the price falling toward 5500. Analysis:
On a 15-minute timeframe, the descending triangle would indicate consolidation after an initial downtrend. A breakout below D (5520) confirms the bearish continuation. Volume (not visible on the chart, but a factor to consider) likely increased during the breakout, validating the move. The price appears to be heading toward more significant support around 5500, which has already been tested.
Projection:
Bearish Target: If the price continues to decline, the next key level could be between 5480 and 5470, depending on historical support or the projected height of the triangle.
Bullish Reversal: If the price rebounds from 5500 and breaks above the triangle resistance (around 5540), we could see a further move toward 5567.
Strategy:
Short: Entry after the breakout at D (5520), with a stop loss adjusted above the triangle resistance (5540) and an initial profit-taking at 5480.
Buy (Alternate Scenario): If the price rebounds from 5500 and breaks higher, enter above 5540, with a stop loss below 5520 and a profit-taking at 5567.
Risk Management: Take a 1-2% risk per trade and monitor macroeconomic events that may affect the S&P 500.
Note: This analysis is for informational purposes only and is based on a simulated 15-minute timeframe. Be sure to confirm this with a real 15-minute chart and apply appropriate risk management.
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.
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.