SPX: Still doing some RANGE TRADING!
Hello traders and investors! Let’s see how the SPX is doing today!
In the 1h chart, the index is still inside a range between 4,168 and 4,073, the 21 ema is flat, and its movements have been erratic in the short-term.
This is just a consequence of this congestion, and it must either lose the 4,073 to reverse the trend, or break the 4,168 in order to resume the bullish bias.
Meanwhile, any correction that brings the index close to the 4,073 is an opportunity to buy, while every time it gets closer to the 4,168 could be an opportunity to sell.
In the daily chart, we still see the Double Bottom chart pattern, triggered when the index broke the 4,090 (red line), while we are trading above the 21 ema (which is ascending). In addition, it seems we have a Flag chart pattern in process right now.
Since we are trading above its support levels, and we see some good bullish structures, the bias is bullish, unless we lose the 4,090/21 ema. Either way, opportunities to buy have a higher risk/reward at the moment, considering that our target is 4,500.
The only thing missing is a good reaction with high volume. So far, the volume has been too low, and the longer it takes to break the 4,168, higher are the chances of a bearish reversal.
Let’s keep our eyes open, and watch the key points for now. I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my daily analyses.
In the 1h chart, the index is still inside a range between 4,168 and 4,073, the 21 ema is flat, and its movements have been erratic in the short-term.
This is just a consequence of this congestion, and it must either lose the 4,073 to reverse the trend, or break the 4,168 in order to resume the bullish bias.
Meanwhile, any correction that brings the index close to the 4,073 is an opportunity to buy, while every time it gets closer to the 4,168 could be an opportunity to sell.
In the daily chart, we still see the Double Bottom chart pattern, triggered when the index broke the 4,090 (red line), while we are trading above the 21 ema (which is ascending). In addition, it seems we have a Flag chart pattern in process right now.
Since we are trading above its support levels, and we see some good bullish structures, the bias is bullish, unless we lose the 4,090/21 ema. Either way, opportunities to buy have a higher risk/reward at the moment, considering that our target is 4,500.
The only thing missing is a good reaction with high volume. So far, the volume has been too low, and the longer it takes to break the 4,168, higher are the chances of a bearish reversal.
Let’s keep our eyes open, and watch the key points for now. I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my daily analyses.
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