This is a simple analysis of SPY's trend.
Clear as day, SPY's price action is best contained within a rising wedge. Rising wedges have the tendency to break down after the 3rd test of the upper trend line.
If we break to the downside of this wedge, this gives us a target of 223 which is measured by the top and the bottom of the broad end of the wedge.
I think this break down will be better confirmed if the price holds below the 50% fib retracement level at 278.
Clear as day, SPY's price action is best contained within a rising wedge. Rising wedges have the tendency to break down after the 3rd test of the upper trend line.
If we break to the downside of this wedge, this gives us a target of 223 which is measured by the top and the bottom of the broad end of the wedge.
I think this break down will be better confirmed if the price holds below the 50% fib retracement level at 278.
Note
If the price is able to hold the 50% retracement line (50% of the distance between the top at 340 and bottom at 218) then we may see a test of the upper part of the wedge around $290 which is also where the 50 day moving average is. The 50 day moving average is very influential and has proven to be very strong resistance/support in the past as many institutional traders buy and sell on this indicator.Note
Here is an update chart and analysis of the rising wedge:
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
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.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
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.