RUBBER MEETS THE ROAD moment for US Indices.
Updated
Hi Guys,
The US Indices are facing some real selling pressure currently and the Nasdaq and S&P 500 in particular are in critical must hold price areas if they are to keep their uptrends on daily timeframe intact.
There is a bearish harmonic Gartley pattern that is developing on the SP500 with perfect fib ratios. If price holds the current level and we see a rally then the pattern's entry point would coincide with a strong resistance zone/ supply area , where sell setups should arise. 4HR overbought RSI could also be added as confluence should price rally to that point.
Lower time frame entry using shooting star or engulfing candle or double top, inv head shoulders pattern or CHOCH or trendline break etc.. would allow for tight stop loss placement and result in a nice risk to reward trade with target being the current support zone.
If we break and close on the 4hour or Daily time frame then we would have confirmation of trend change/ reversal point / break of structure and can start looking at lower points for discount buy zones and start selling into any bulllish rallies from this point.
I personally wouldn't mind seeing a reversal here and a return to some lower prices but we will see how things play out here.
Markets are very volatile at the moment so there are plenty of opportunities but ensure that you have risk management under control before entering into any trades.
Safe trading all.
The US Indices are facing some real selling pressure currently and the Nasdaq and S&P 500 in particular are in critical must hold price areas if they are to keep their uptrends on daily timeframe intact.
There is a bearish harmonic Gartley pattern that is developing on the SP500 with perfect fib ratios. If price holds the current level and we see a rally then the pattern's entry point would coincide with a strong resistance zone/ supply area , where sell setups should arise. 4HR overbought RSI could also be added as confluence should price rally to that point.
Lower time frame entry using shooting star or engulfing candle or double top, inv head shoulders pattern or CHOCH or trendline break etc.. would allow for tight stop loss placement and result in a nice risk to reward trade with target being the current support zone.
If we break and close on the 4hour or Daily time frame then we would have confirmation of trend change/ reversal point / break of structure and can start looking at lower points for discount buy zones and start selling into any bulllish rallies from this point.
I personally wouldn't mind seeing a reversal here and a return to some lower prices but we will see how things play out here.
Markets are very volatile at the moment so there are plenty of opportunities but ensure that you have risk management under control before entering into any trades.
Safe trading all.
Note
Pattern now invalidated
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.