New record + Exhaustion gap! How to proceed?
Hello traders and investors! Ok, SPX did another ATH, which is incredible! A few months ago, people thought the world was going to end, but we see a new record high still in 2020. Maybe this doesn’t make sense to some of us, but it does to Technical Analysis.
The market is in a clear bull trend since April, and it seems nothing can stop SPX. Right now, it is doing something interesting: A breakout from the pre-coronavirus ATH with a gap. This makes me wonder if this is a runaway gap, or an exhaustion gap.
The answer will appear soon. If this gap gets filled in the next few days, it means the trend is not that strong to keep it open, and we may see something new on SPX. If you ask me, I don’t see it as a runaway gap, as it is too late in this movement.
On the other hand, SPX is close to the purple trendline and 21 ema, which may support the price if anything goes wrong. There’s nothing telling us the trend will reverse, but we could use pullback here.
If I were on SPX right now, I would just set a trailing stop at the yesterday’s candlestick low and book my profits if it closes under it.
But a pullback would be something normal and expected right now. It doesn’t mean to go short, but to just wait for a pullback to buy SPX again, at a cheaper price.
Now, the hourly chart:
There’s no sign of a pullback here, and every time SPX gets close to the 21 ema is just opportunity to buy, if you like fast trades, of course. But in the short-term, a pullback to the red line (previous top) would be ok and wouldn’t spoil the bull trend.
Also, support this idea if it helped you! And follow me for more analyses! I'm here every day, after the market closes, and I'm sure you'll find something interesting around!
The trend is very strong here, and since we are in new territory, we should be cautious here, and manage our positions the best way we can.
Recent public trades (links below):
XP: +30%
AAPL: +10%
LB: +45%
UKOIL: +62%
Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate!
BECOME A MEMBER!
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
The market is in a clear bull trend since April, and it seems nothing can stop SPX. Right now, it is doing something interesting: A breakout from the pre-coronavirus ATH with a gap. This makes me wonder if this is a runaway gap, or an exhaustion gap.
The answer will appear soon. If this gap gets filled in the next few days, it means the trend is not that strong to keep it open, and we may see something new on SPX. If you ask me, I don’t see it as a runaway gap, as it is too late in this movement.
On the other hand, SPX is close to the purple trendline and 21 ema, which may support the price if anything goes wrong. There’s nothing telling us the trend will reverse, but we could use pullback here.
If I were on SPX right now, I would just set a trailing stop at the yesterday’s candlestick low and book my profits if it closes under it.
But a pullback would be something normal and expected right now. It doesn’t mean to go short, but to just wait for a pullback to buy SPX again, at a cheaper price.
Now, the hourly chart:
There’s no sign of a pullback here, and every time SPX gets close to the 21 ema is just opportunity to buy, if you like fast trades, of course. But in the short-term, a pullback to the red line (previous top) would be ok and wouldn’t spoil the bull trend.
Also, support this idea if it helped you! And follow me for more analyses! I'm here every day, after the market closes, and I'm sure you'll find something interesting around!
The trend is very strong here, and since we are in new territory, we should be cautious here, and manage our positions the best way we can.
Recent public trades (links below):
XP: +30%
AAPL: +10%
LB: +45%
UKOIL: +62%
Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate!
BECOME A MEMBER!
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
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