SPX500 - Rally and Candlesticks
Hello Friends,
I would like to stress the importance to check higher level TFs candles to get and idea if rally can continue after such a lengthy run.
In this idea I want to demonstrate that monthly candlesticks analysis with a little hint from Elliott Waves can show that SPX rally will continue if 2815 is broken up. I personally believe that it is very high probability of this happening.
The char shows that we had an inside bar on Nov, 2018 and the candlestick pattern got triggered by breaking low of "mother" candle Oct, 2018 low. BUT after initial drop price quickly found support and returned above October candle low. That showed strength and suggested that price will go to the opposite side of mother candle (Oct, 2018), which effectively means - REVISIT THE TOP. During the rally on Monthly chart we produced another BULLISH inside bar candle Jan, 2019 and currently we are about to knock on the top of it mother candle Dec 2018.
Once we break Dec, 2018 top - bullish inside bar pattern triggers renewed rally which will fulfill the destiny to revisit the top and potentially break it.
Having that in mind we can say that 2019 will be a bullish year for stocks and with that drop in Nov/Dec 2018 big money just made much better position for year 2019. Look at the volume! All the selling has been bought. Price moving above that sell off volume!
Any comments/questions are welcome.
I would like to stress the importance to check higher level TFs candles to get and idea if rally can continue after such a lengthy run.
In this idea I want to demonstrate that monthly candlesticks analysis with a little hint from Elliott Waves can show that SPX rally will continue if 2815 is broken up. I personally believe that it is very high probability of this happening.
The char shows that we had an inside bar on Nov, 2018 and the candlestick pattern got triggered by breaking low of "mother" candle Oct, 2018 low. BUT after initial drop price quickly found support and returned above October candle low. That showed strength and suggested that price will go to the opposite side of mother candle (Oct, 2018), which effectively means - REVISIT THE TOP. During the rally on Monthly chart we produced another BULLISH inside bar candle Jan, 2019 and currently we are about to knock on the top of it mother candle Dec 2018.
Once we break Dec, 2018 top - bullish inside bar pattern triggers renewed rally which will fulfill the destiny to revisit the top and potentially break it.
Having that in mind we can say that 2019 will be a bullish year for stocks and with that drop in Nov/Dec 2018 big money just made much better position for year 2019. Look at the volume! All the selling has been bought. Price moving above that sell off volume!
Any comments/questions are welcome.
Trade active
Haven’t been updating this idea for long time. Everything goes as planed last weekly candle closed above 2815 which enabled this trade. Good luck!Note
Progressing nicely. Time to ensure it will be a profitable trade and setup SL a little higher than break even. Not too tight. We will tighten it later when approaching our targets. Never let profitable trades to become a loss!
Note
Price is approaching primary target. Time to ensure the profit by placing trailing SL at comfortable level. Always protect profitable trade.Trade closed: target reached
SUCCESS. Target reached. Some may want to keep position for bonus target at 3100 but there is no guarantee it will be reached.Note
Looks like 3100 target is likely now. Perfect.Note
Just a reminder to watch these projection Fibonacci levels. Price is approaching 1.27 fib level which is often reversal level. Although, I believe that stock market will bubble exponentially before dropping.Note
My advise is to take profit at 1.27 fib. It might reject significantly from it. We should be able to reenter at lower price.Note
1.27 got officially hit.
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