SPX at ATH! Which strategies to use now?
Hello traders and investors! Let’s do a complete Multi Time Frame Analysis (MTFA) on SPX today! We are going to look at the charts, then we will discuss about strategies.
It did a new ATH today (close), which is impressive! The U.S. market is very strong, and it seems the bears can’t stand a chance. There’s no sign of a pullback ahead, and it seems SPX just fulfilled a chart pattern named V shape recovery.
Now we are near a natural resistance zone (red line), and SPX still must do a proper breakout from the black line (pre covid-19 ATH). But SPX is trading above the 21 ema, so, if it will do a pullback in the future, it has the 21 ema and the purple line as important supports levels.
Now, let’s see the daily chart:
The only thing that bugs me here is the decreasing volume. Another important thing to keep in mind is the purple trendline, which has been guiding the price for a while.
If SPX loses its trendline, the red line at 3280 is a target for a pullback. But again, it would be just a pullback, not a reversal. When we see a pullback, we buy near its supports. Very simple.
But until now, there’s nothing indicating there’s a pullback ahead. Let’s see the weekly chart for a complete analysis:
Since we are near a natural resistance, it is never a good idea to buy. Also, is not interesting to short, as the Risk/Reward ratio is not good. Now is the time to manage positions. The weekly chart suggests that a pullback to the purple line around 3232 would be acceptable.
Now, strategies:
If you are long, just book your profits if SPX loses the purple trendline in the daily chart. Another good idea is to book your profits if SPX closes under the previous candlestick low, this is a trailing stop.
Or you could just wait for a bearish pivot in the hourly chart. All these strategies are very good to manage your positions in the most intelligent way possible.
Then you may just buy SPX again after the pullback, when it gets close to a support. This will eventually happen and is better be prepared!
Also, if you liked these techniques, support this idea! And I invite you to follow me for more analyses. Every day, after the market closes, I’ll be here to share a few ideas with you.
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. *
It did a new ATH today (close), which is impressive! The U.S. market is very strong, and it seems the bears can’t stand a chance. There’s no sign of a pullback ahead, and it seems SPX just fulfilled a chart pattern named V shape recovery.
Now we are near a natural resistance zone (red line), and SPX still must do a proper breakout from the black line (pre covid-19 ATH). But SPX is trading above the 21 ema, so, if it will do a pullback in the future, it has the 21 ema and the purple line as important supports levels.
Now, let’s see the daily chart:
The only thing that bugs me here is the decreasing volume. Another important thing to keep in mind is the purple trendline, which has been guiding the price for a while.
If SPX loses its trendline, the red line at 3280 is a target for a pullback. But again, it would be just a pullback, not a reversal. When we see a pullback, we buy near its supports. Very simple.
But until now, there’s nothing indicating there’s a pullback ahead. Let’s see the weekly chart for a complete analysis:
Since we are near a natural resistance, it is never a good idea to buy. Also, is not interesting to short, as the Risk/Reward ratio is not good. Now is the time to manage positions. The weekly chart suggests that a pullback to the purple line around 3232 would be acceptable.
Now, strategies:
If you are long, just book your profits if SPX loses the purple trendline in the daily chart. Another good idea is to book your profits if SPX closes under the previous candlestick low, this is a trailing stop.
Or you could just wait for a bearish pivot in the hourly chart. All these strategies are very good to manage your positions in the most intelligent way possible.
Then you may just buy SPX again after the pullback, when it gets close to a support. This will eventually happen and is better be prepared!
Also, if you liked these techniques, support this idea! And I invite you to follow me for more analyses. Every day, after the market closes, I’ll be here to share a few ideas with you.
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. *
⚠️ Want to take your trading to the next level?
👉 Join the Finance Hydra VIP Mentorship - 6 weeks of mentoring with weekly meetings and ongoing support. Limited places available!
✅ Find out more and sign up: thefinancehydra.com/
👉 Join the Finance Hydra VIP Mentorship - 6 weeks of mentoring with weekly meetings and ongoing support. Limited places available!
✅ Find out more and sign up: thefinancehydra.com/
Related publications
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.