1. What happened yesterday?
In my weekend analysis covering US indices, I mentioned that US500 (SP500) could drop and test the ascending trend line starting back at the pandemic low. This line is confluent with the horizontal support level given by January 2022 ATH, offering a good opportunity for traders to open long positions.
Indeed, at least on CFDs and futures, this trend line was touched, and the price rebounded strongly from there.
2. Key Question:
Will we have a full V-shape recovery, or will the price drop back below 5k in the coming sessions?
3. Why I expect a continuation of the correction:
🔸 Strong Resistance: The US500 has established a robust ceiling around the 5350-5400 zone(also a gap there)
🔸 Lack of Building Momentum on Support: There's no clear indication that this resistance will be broken anytime soon with the lack of accumulation under 5k
🔸 Potential for Further Decline: Given the current market structure, a drop below 5k remains a realistic possibility in the upcoming sessions.
4. Trading Plan:
🎯 My Strategy: Playing the range.
✅ Buy near the 4800 support.
✅ Sell into the resistance zone between 5350 and 5400.
5. Conclusion:
I’m watching for market confirmations and will continue applying this range strategy until there’s a clear directional change. 🚀
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
In my weekend analysis covering US indices, I mentioned that US500 (SP500) could drop and test the ascending trend line starting back at the pandemic low. This line is confluent with the horizontal support level given by January 2022 ATH, offering a good opportunity for traders to open long positions.
Indeed, at least on CFDs and futures, this trend line was touched, and the price rebounded strongly from there.
2. Key Question:
Will we have a full V-shape recovery, or will the price drop back below 5k in the coming sessions?
3. Why I expect a continuation of the correction:
🔸 Strong Resistance: The US500 has established a robust ceiling around the 5350-5400 zone(also a gap there)
🔸 Lack of Building Momentum on Support: There's no clear indication that this resistance will be broken anytime soon with the lack of accumulation under 5k
🔸 Potential for Further Decline: Given the current market structure, a drop below 5k remains a realistic possibility in the upcoming sessions.
4. Trading Plan:
🎯 My Strategy: Playing the range.
✅ Buy near the 4800 support.
✅ Sell into the resistance zone between 5350 and 5400.
5. Conclusion:
I’m watching for market confirmations and will continue applying this range strategy until there’s a clear directional change. 🚀
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
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.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
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.