SPY has been showing a strong recovery trend, climbing steadily within a well-defined ascending channel on the hourly chart. This analysis aims to provide actionable insights for scalpers and swing traders, focusing on critical levels, potential liquidity zones, and price action patterns to watch for the week ahead.
Technical Analysis Overview:
* Trend: The SPY is currently trading within an ascending channel, indicating bullish momentum with potential pullbacks.
* Support Levels:
* Immediate support at $601.33, aligned with the EMA and a key pivot zone.
* Stronger support at $597.29, marking the lower boundary of the channel.
* Resistance Levels:
* Immediate resistance at $603.35, a key liquidity zone.
* Next major resistance at $606, near the top of the channel.
* Liquidity Zones:
* Watch for liquidity absorption between $602.70–$603.35 as this is a high-traffic area for short-term traders.
* A break above $603.35 could trigger momentum buying toward $606.
* Indicators:
* MACD is showing bullish crossover momentum.
* Volume is steady but needs an uptick for confirmation on breakouts.
Game Plan for Scalpers:
1. Entry:
* Look for long entries near $601.33, targeting $603.35 with tight stop-loss at $600.50.
* A breakout above $603.35 provides a scalp opportunity up to $606.
2. Exit:
* Close partial positions at resistance zones for safety and trail stop-loss.
Game Plan for Swing Traders:
1. Bullish Scenario:
* Enter on pullbacks to $597–$598 if the level holds with strong buying pressure.
* Target $606, with a stop-loss below $596.
2. Bearish Scenario:
* If SPY breaks below $597, consider shorting toward $593 as the next support level.
* Stop-loss for short trades above $599.50.
My Thoughts: The SPY’s momentum suggests a bullish bias, but the upper channel boundary near $606 could act as resistance in the short term. For scalpers, it’s all about quick reactions around the pivot zones, while swing traders need to watch for pullbacks to confirm support levels. Overall, patience and volume confirmation are key to avoiding false breakouts.
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Always perform your own due diligence and trade responsibly.
Technical Analysis Overview:
* Trend: The SPY is currently trading within an ascending channel, indicating bullish momentum with potential pullbacks.
* Support Levels:
* Immediate support at $601.33, aligned with the EMA and a key pivot zone.
* Stronger support at $597.29, marking the lower boundary of the channel.
* Resistance Levels:
* Immediate resistance at $603.35, a key liquidity zone.
* Next major resistance at $606, near the top of the channel.
* Liquidity Zones:
* Watch for liquidity absorption between $602.70–$603.35 as this is a high-traffic area for short-term traders.
* A break above $603.35 could trigger momentum buying toward $606.
* Indicators:
* MACD is showing bullish crossover momentum.
* Volume is steady but needs an uptick for confirmation on breakouts.
Game Plan for Scalpers:
1. Entry:
* Look for long entries near $601.33, targeting $603.35 with tight stop-loss at $600.50.
* A breakout above $603.35 provides a scalp opportunity up to $606.
2. Exit:
* Close partial positions at resistance zones for safety and trail stop-loss.
Game Plan for Swing Traders:
1. Bullish Scenario:
* Enter on pullbacks to $597–$598 if the level holds with strong buying pressure.
* Target $606, with a stop-loss below $596.
2. Bearish Scenario:
* If SPY breaks below $597, consider shorting toward $593 as the next support level.
* Stop-loss for short trades above $599.50.
My Thoughts: The SPY’s momentum suggests a bullish bias, but the upper channel boundary near $606 could act as resistance in the short term. For scalpers, it’s all about quick reactions around the pivot zones, while swing traders need to watch for pullbacks to confirm support levels. Overall, patience and volume confirmation are key to avoiding false breakouts.
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Always perform your own due diligence and trade responsibly.
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.