This might be one of the best long trade setups out there right now. I will post my analysis this evening; I hope in the meantime you can study the chart to see some indicator clues for yourself.
*** Strong bullish view is valid only if XBI closes over 86, AAPL closes over 152.60 (ideally 153), and SPX closes over 3915 (ideally 3930). Yes, I want all 3 conditions to be met.
*** Strong bullish view is valid only if XBI closes over 86, AAPL closes over 152.60 (ideally 153), and SPX closes over 3915 (ideally 3930). Yes, I want all 3 conditions to be met.
Note
To present the bearish view as well:Note
Correction to main chart - I inverted the Fibonacci levels. So sorry! "1" should be at the bottom since that is full retrace from the recent top, which should be "0".Note
Update on bullish view - XBI closed above 86, check. AAPL closed under the 50% Fib 152.60 but I like the close over 152.30. AAPL has a 151-152 support area and demand may increase 149-150. SPX was finally pulled down below 3900 and barely closed above, no good.Here is a list of bullish leaning indicators that are shown in the main chart:
1- Yellow line 151-152 support area must hold
2- Support at 50% Fib retrace, 152.60
3- Last week's strong rally, ending 12Sep, came after a sharp move lower. It is common to see a second round of selling to new lows, which creates bullish divergence.
4- RSI gives support to #3. After peaking above 70 at the August top, RSI stayed over 33.33 and moved up as price made a lower close.
Three indicators not shown on the chart:
1- Price has bullish support from Ichimoku cloud
2- Stochastic %D indicates strength (%K needs to turn up to confirm)
3- Weekly chart - After rising for weeks, price retreated to the 20sma,151.91, which needs to hold as support for a next leg up
IMPORTANT - On one hand the white line paints a compelling picture (with above indicators) and this chart could "tip" a bullish bias into action. While I use my indicators with high confidence, there are times when 2-3 directional possibilities seem equally possible (up, down, sideways). This is why I also presented a bearish interpretation of what may come next. So please, do not load a position because someone else's chart looks convincing. Each new day's price action can change the author's outlook.
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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.