SPY for Friday (10/11/2024)Price Action:
Current Resistance Zone: SPY appears to be hovering around a resistance zone near 577.64 - 577.71. These levels have seen multiple tests but no breakout. The market has consolidated in this region.
Support Zones: There's a visible support area at 565.31, marked by a green order block on the chart. The price has previously bounced from this level.
Trendline Support: There's a rising trendline suggesting that the overall structure still remains bullish, provided the price continues to respect it.
Direction:
Bullish Bias: The price is still in an uptrend as it hasn't broken below the trendline support. However, if SPY fails to break above the 577.71 resistance zone, it might pull back toward the trendline or the lower support near 567.50.
Bearish Potential: A break below 574.47 could lead to further downside toward 573.34 and potentially lower to the 565.31 area if selling pressure increases. Watch for a confirmation of trendline break or further rejection at resistance.
Order Block:
Bullish Order Block: The green block area around 567.50 to 565.31 represents an accumulation zone where buyers have previously stepped in, creating a support base. If price retraces to this zone, it's likely to see buying activity again.
Bearish Order Block: If the price fails to break above the 577 region and reverses, it could set up a lower high, pushing it back toward the trendline or the green block. Monitor how price behaves in this resistance zone.
Indicators:
Volume: Volume seems to be decreasing in the recent rally, which could indicate weakening bullish momentum, especially near resistance.
Momentum Oscillators: The oscillators below the chart seem to show volatility spikes, indicating a potential shift in momentum soon.
Strategy:
For scalping, you may consider shorts near 577.64 with a stop just above 577.71, aiming for a retracement to the order block around 567.50.
For long trades, look for a bounce or consolidation at the lower trendline or support block near 565.31 for potential entries.
Disclaimer:
This technical analysis is based on historical price data and does not guarantee future performance. Always consider external factors, such as macroeconomic data and market conditions, when trading. Risk management is essential to limit potential losses.