SPY LOVERS, BE READY ! This week, I decided to remove some objects I had in the chart history as references, which we’ve been analyzing, to make some space and clean up the chart a bit.
After reaching all-time highs, the price has naturally begun a retracement.
But what’s new in technical analysis?
Let’s analyze the price together:
In this case, I added an ascending channel where the price follows an upward sequence, bouncing between support and resistance.
Here’s the million-dollar question: How much further can the price drop?
If we look at the chart, I marked a very important line in red or maroon color at $575.12, which aligns with a resistance pivot and two indecisive candlesticks with identical volumetric bodies.
Often, indecisive levels are key to how the market makes sudden decisions after an indecisive candle. In this case, if we pay closer attention, the indecisive level marked in maroon color is positioned exactly at the support of the ascending channel. This suggests how far the price might fall, and we could potentially see a rebound. For me, this would be the primary scenario.
But...
If the price breaks through this level, my second scenario would be a drop to the order block. Since this level has acted as both support and resistance in the past, I can validate it as my secondary inflection zone or "Inflection Block."
You might wonder: What on earth is an inflection zone?
As I’ve mentioned multiple times and explained in some of my analysis, inflection zones—or points of inflection—represent moments where there’s a significant change in the price’s direction within a trend, whether in a market, an asset, or an economy.
On a trading chart, an inflection point is the spot where the chart changes direction or marks an important decision.
An inflection zone can also be a historical area on a chart. As we can see, my order block is already being considered an inflection zone because the price has historically made key moves within it. and i called it "Inflection Block" (See the white arrows).
Thank you for supporting my analysis.
TRADE SAFE
Best regards!
