SPY is trading within a rising channel on the hourly chart, suggesting bullish momentum is building. After bouncing off the lower boundary of the channel near $584, it has steadily climbed, reclaiming key resistance levels at $590 and currently testing $591.50. Volume has picked up, and the MACD is crossing bullish, signaling potential continuation toward higher levels.
Key Technical Zones:
1. Liquidity Zone (Demand Area):
* The area around $584 - $582 has seen significant buy-side interest, making it a key demand zone.
* If the price pulls back, this zone may provide strong support for a bounce.
2. Order Block (Supply Zone):
* Watch for resistance at $594 - $595, which aligns with previous price rejections. This is a likely area for sellers to reenter.
3. Support Levels:
* S1: $588 (minor pullback area)
* S2: $584 (demand zone)
* S3: $581 (major breakdown level)
4. Resistance Levels:
* R1: $592.50 (current intraday resistance)
* R2: $594.50 (supply zone upper boundary)
* R3: $600 (psychological level)
Scalping Plan:
* Bullish Setup:
* If SPY breaks above $592.50 with increasing volume, scalp long toward $594.50.
* Entry: $592.60, Stop: $591.50, Target: $594.50.
* Watch for volume confirmation and momentum to sustain the breakout.
* Bearish Setup:
* If SPY rejects $594.50, consider a short scalp back to $592.
* Entry: $594.40, Stop: $595.50, Target: $592.
Swing Trade Plan:
* Bullish Swing:
* Long position if SPY holds above the midline of the rising channel near $590.
* Entry: $590.50, Stop: $587.50, Target: $600.
* Suggestion: Look for a daily close above $594 to add conviction.
* Bearish Swing:
* Short position if SPY breaks below the lower boundary of the channel ($584).
* Entry: $583.50, Stop: $586, Target: $578.
* Watch for weakness around major support zones for further downside.
Indicators to Watch:
* Volume: Sustained buying volume is critical to push above $592.50. A lack of follow-through could trigger a reversal.
* MACD: Bullish crossover currently supports upward momentum but monitor for potential divergence near key resistance.
* RSI: Approaching overbought territory; a pullback might be due if RSI crosses above 70.
Thoughts on Market Direction: SPY is showing strength in this channel, and as long as it holds above $590, the bias remains bullish. However, resistance at $594 - $595 could pose a significant challenge, and any rejection there might lead to a retest of $588 or lower. Scalpers should be nimble around these key levels, while swing traders can look for a breakout confirmation or a breakdown of the rising channel for directional plays.
Conclusion: SPY is set up for a critical day, with clear support and resistance levels to guide both scalping and swing trading strategies. Stay flexible, manage your risk, and watch for volume confirmation to gauge the market's strength.
Disclaimer: This analysis is for educational purposes only and not financial advice. Trade at your own risk, and always use proper risk management strategies.
Key Technical Zones:
1. Liquidity Zone (Demand Area):
* The area around $584 - $582 has seen significant buy-side interest, making it a key demand zone.
* If the price pulls back, this zone may provide strong support for a bounce.
2. Order Block (Supply Zone):
* Watch for resistance at $594 - $595, which aligns with previous price rejections. This is a likely area for sellers to reenter.
3. Support Levels:
* S1: $588 (minor pullback area)
* S2: $584 (demand zone)
* S3: $581 (major breakdown level)
4. Resistance Levels:
* R1: $592.50 (current intraday resistance)
* R2: $594.50 (supply zone upper boundary)
* R3: $600 (psychological level)
Scalping Plan:
* Bullish Setup:
* If SPY breaks above $592.50 with increasing volume, scalp long toward $594.50.
* Entry: $592.60, Stop: $591.50, Target: $594.50.
* Watch for volume confirmation and momentum to sustain the breakout.
* Bearish Setup:
* If SPY rejects $594.50, consider a short scalp back to $592.
* Entry: $594.40, Stop: $595.50, Target: $592.
Swing Trade Plan:
* Bullish Swing:
* Long position if SPY holds above the midline of the rising channel near $590.
* Entry: $590.50, Stop: $587.50, Target: $600.
* Suggestion: Look for a daily close above $594 to add conviction.
* Bearish Swing:
* Short position if SPY breaks below the lower boundary of the channel ($584).
* Entry: $583.50, Stop: $586, Target: $578.
* Watch for weakness around major support zones for further downside.
Indicators to Watch:
* Volume: Sustained buying volume is critical to push above $592.50. A lack of follow-through could trigger a reversal.
* MACD: Bullish crossover currently supports upward momentum but monitor for potential divergence near key resistance.
* RSI: Approaching overbought territory; a pullback might be due if RSI crosses above 70.
Thoughts on Market Direction: SPY is showing strength in this channel, and as long as it holds above $590, the bias remains bullish. However, resistance at $594 - $595 could pose a significant challenge, and any rejection there might lead to a retest of $588 or lower. Scalpers should be nimble around these key levels, while swing traders can look for a breakout confirmation or a breakdown of the rising channel for directional plays.
Conclusion: SPY is set up for a critical day, with clear support and resistance levels to guide both scalping and swing trading strategies. Stay flexible, manage your risk, and watch for volume confirmation to gauge the market's strength.
Disclaimer: This analysis is for educational purposes only and not financial advice. Trade at your own risk, and always use proper risk management strategies.
Trade active
SPY is moving within a rising channel, maintaining a bullish trend. The recent candles show strong upward momentum, as price pushes past the $591 - $592 resistance zone. The price action suggests buyers are in control for now.The MACD shows a bullish crossover, with the histogram turning positive, signaling momentum is picking up. This supports the continuation of the upward move.
Volume is consistent but not overly high, meaning the breakout above $592 needs further confirmation.
Trade closed: target reached
Bullish Scenario (Higher Probability):* If SPY maintains support above $591.00 (VWAP and EMA), it is likely to:
* Push towards $593.00–$593.50
* Break above this level and test $594.50–$595.00 before the close.
Bearish Scenario:
* If SPY breaks below $591.00 with volume:
* It may pull back to $588.00–$588.12.
* A deeper pullback to $584.63 (major support) would require significant selling pressure.
Note
SPY is holding strong in a bullish channel on the 1-hour chart, with momentum slightly fading. Here’s the plan for today, Nov.22Key Levels:
Resistance: 593.40-595.12 (watch for rejections or breakouts).
Support: 591.50-590.00 (ideal for dip buys).
Scalping Setup:
Long: Enter near 591.50 with targets at 593.50 & 595.12. Tight stop at 591.00.
Short: Rejects at 595.12 with targets at 593.50 & 591.50. Stop above 595.50.
Swing Setup:
Bullish: Buy near 590.00 demand zone. Target 595.00, extend to 597.50. Stop below 588.50.
Bearish: Enter below 591.00 on confirmation. Target 584.50. Stop above 593.00.
Thoughts:
SPY could pull back to 591.50 before another run to test 595+. Bulls remain in control unless we see strong selling below 590.
Note
Current Observations: Nov. 22 10:14 amHigher Highs (HH) and Higher Lows (HL):
SPY is showing clear signs of bullish momentum, breaking above key levels while respecting the ascending trendline.
MACD Crossover:
MACD has turned bullish, indicating upward momentum, with the histogram expanding in the positive zone.
Volume Pickup:
Increased buying volume supports the breakout above 595.50, a significant resistance zone.
Key Levels to Watch:
Support:
595.50 (previous resistance, now support if retested).
594.50 (VWAP and trendline confluence).
Resistance:
596.50 (next key level within the bullish channel).
597.50 (upper range of the channel).
Possible Scenarios:
Bullish Continuation:
If SPY holds above 595.50, it’s likely to target 596.50 and possibly 597.50.
Look for consolidation or a pullback to 595.50 for a potential long entry.
Bearish Pullback:
A break below 595.50 could trigger a pullback to 594.50, where buyers might step in again.
Short setups could target 594.50, but this scenario is less likely given the current bullish momentum.
Thoughts:
SPY is trending strongly upward, with buyers in control. Watch for a healthy pullback to 595.50 for potential long setups. Manage risk tightly, as this level will act as a key pivot point for the session.
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.
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.