Beautiful $SPX price action, ascending triangle
LONG TERM TREND: Neutral/Bearish
TIMEFRAME: Intraday
What a textbook ascending triangle pattern we're witnessing on
SPX today! đź‘€
Price action has been absolutely pristine, giving us multiple touches on both the ascending support trendline and the horizontal resistance. Each bounce off support has been getting progressively higher, while sellers continue defending that key overhead level - classic ascending triangle behavior.
The swings within this pattern have been a trader's dream - offering clean entries and exits for those playing the range. We've seen buyers step in with conviction at each test of the rising support, leading to predictable bounces.
However, there's a concerning development here... While ascending triangles are typically considered bullish continuation patterns, the momentum on each bounce is getting noticeably weaker. Volume has been declining throughout the pattern formation (a bearish divergence), and the last two tests of resistance showed significant rejection wicks.
If this declining momentum continues, watch for a break below the ascending support line. Such a break would likely trigger a cascade of stops and could lead to an accelerated move lower. Key levels to watch would be 5950, 5940 and ultimately 5925.
Remember to always manage risk and size positions appropriately. No pattern is guaranteed to play out as expected.
What are your thoughts on this setup?
#SPX #TechnicalAnalysis #ChartPatterns
TIMEFRAME: Intraday
What a textbook ascending triangle pattern we're witnessing on
SPX today! đź‘€Price action has been absolutely pristine, giving us multiple touches on both the ascending support trendline and the horizontal resistance. Each bounce off support has been getting progressively higher, while sellers continue defending that key overhead level - classic ascending triangle behavior.
The swings within this pattern have been a trader's dream - offering clean entries and exits for those playing the range. We've seen buyers step in with conviction at each test of the rising support, leading to predictable bounces.
However, there's a concerning development here... While ascending triangles are typically considered bullish continuation patterns, the momentum on each bounce is getting noticeably weaker. Volume has been declining throughout the pattern formation (a bearish divergence), and the last two tests of resistance showed significant rejection wicks.
If this declining momentum continues, watch for a break below the ascending support line. Such a break would likely trigger a cascade of stops and could lead to an accelerated move lower. Key levels to watch would be 5950, 5940 and ultimately 5925.
Remember to always manage risk and size positions appropriately. No pattern is guaranteed to play out as expected.
What are your thoughts on this setup?
#SPX #TechnicalAnalysis #ChartPatterns
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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.