1. Support/Resistance Zone
The SUPPORT LEVEL marked around 6,020 – 6,155 previously acted as a resistance area (now tested again as resistance).
Price rejected this zone recently, indicating strong selling pressure.
2. Moving Averages (EMA)
EMA 50 (Red line): 5,730.85
EMA 200 (Blue line): 5,710.78
Price is currently above both EMAs, which typically indicates a short-term bullish bias, but the recent rejection hints at a pullback.
3. Price Action
The S&P 500 failed to break and hold above the 6,020 resistance, and has since dropped to around 5,802.83, right above the 50/200 EMA confluence, suggesting this could be a critical decision zone.
4. Risk-Reward Setup (Trade Plan)
The chart outlines a short trade setup, implying a bearish expectation:
Entry: Around 6,020
Stop Loss: Around 6,155
Target (POINT): ~4,822
This setup provides a strong Risk-Reward Ratio (~1:5+), ideal for swing trades.
Interpretation
Bearish Bias: The failed breakout above the resistance zone and immediate rejection combined with this setup suggests traders are expecting a deeper correction.
Critical Support: The area around 5,710–5,730 (the EMAs) must hold if bulls are to maintain control. A breakdown here could validate the move toward the 4,822 target.
Next Steps / Considerations
Watch for confirmation: Look for bearish candlestick patterns or break below EMAs for trade confirmation.
Economic events: Be aware of macroeconomic data or earnings that could affect volatility.
Adjust stop if invalidated: If price reclaims and holds above 6,020, the short idea is invalidated.
The SUPPORT LEVEL marked around 6,020 – 6,155 previously acted as a resistance area (now tested again as resistance).
Price rejected this zone recently, indicating strong selling pressure.
2. Moving Averages (EMA)
EMA 50 (Red line): 5,730.85
EMA 200 (Blue line): 5,710.78
Price is currently above both EMAs, which typically indicates a short-term bullish bias, but the recent rejection hints at a pullback.
3. Price Action
The S&P 500 failed to break and hold above the 6,020 resistance, and has since dropped to around 5,802.83, right above the 50/200 EMA confluence, suggesting this could be a critical decision zone.
4. Risk-Reward Setup (Trade Plan)
The chart outlines a short trade setup, implying a bearish expectation:
Entry: Around 6,020
Stop Loss: Around 6,155
Target (POINT): ~4,822
This setup provides a strong Risk-Reward Ratio (~1:5+), ideal for swing trades.
Interpretation
Bearish Bias: The failed breakout above the resistance zone and immediate rejection combined with this setup suggests traders are expecting a deeper correction.
Critical Support: The area around 5,710–5,730 (the EMAs) must hold if bulls are to maintain control. A breakdown here could validate the move toward the 4,822 target.
Next Steps / Considerations
Watch for confirmation: Look for bearish candlestick patterns or break below EMAs for trade confirmation.
Economic events: Be aware of macroeconomic data or earnings that could affect volatility.
Adjust stop if invalidated: If price reclaims and holds above 6,020, the short idea is invalidated.
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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.
Join My Official Channel Link
t.me/goldprotreader
Join My Public Channel Link
t.me/goldprotreader
t.me/goldprotreader
Join My Public Channel Link
t.me/goldprotreader
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.