SPX: Targets in case of a pullback!
Hello traders and investors! Let’s see how SPX is doing today! The movement was quite bearish, but are there reasons to worry? Let’s see about this.
First, we see a Breakaway Gap in the hourly chart, that triggered this sharp movement. It lost the 21 ema, quickly filled this gap at 3528.03, which we will talk about later, when we analyze the daily chart, and it seems it is just seeking for further supports.
It did a good reaction in the end of the day, but not a convincing one. If it closed above the purple line at 3468.35 it would be a better sign. For now, it has another gap to fill at 3399.43, which is close to the black, the pre-coronavirus ATH.
Now, let’s see the daily chart:
The gap we talked about earlier was a typical Exhaustion Gap. Usually these gaps are filled very quickly, and as the name suggests, they indicate that the trend is starting to get weaker. Again, just weaker! They are not reversal patterns, but we can use them to support our exit strategies on an asset.
The good news is that SPX just hit a previous support zone, namely the purple trendline and the 21 ema. The reaction we see in the last candlestick in the hourly chart was due to this support zone, only seen in the daily chart.
The volume is above the average, but the bias is still bullish. Only if SPX loses the mentioned supports, we will see a sharper pullback.
A pullback to what point? Well, the first target is the gap, then the pre-coronavirus ATH (black line), then one of the red lines you can see in the chart. These are the most important points if we see the confirmation of a pullback ahead.
And if you liked this analysis, please support it, and follow me to keep in touch! Every day I’ll share my thoughts with you, and I’m sure you’ll find something helpful.
Stay safe.
First, we see a Breakaway Gap in the hourly chart, that triggered this sharp movement. It lost the 21 ema, quickly filled this gap at 3528.03, which we will talk about later, when we analyze the daily chart, and it seems it is just seeking for further supports.
It did a good reaction in the end of the day, but not a convincing one. If it closed above the purple line at 3468.35 it would be a better sign. For now, it has another gap to fill at 3399.43, which is close to the black, the pre-coronavirus ATH.
Now, let’s see the daily chart:
The gap we talked about earlier was a typical Exhaustion Gap. Usually these gaps are filled very quickly, and as the name suggests, they indicate that the trend is starting to get weaker. Again, just weaker! They are not reversal patterns, but we can use them to support our exit strategies on an asset.
The good news is that SPX just hit a previous support zone, namely the purple trendline and the 21 ema. The reaction we see in the last candlestick in the hourly chart was due to this support zone, only seen in the daily chart.
The volume is above the average, but the bias is still bullish. Only if SPX loses the mentioned supports, we will see a sharper pullback.
A pullback to what point? Well, the first target is the gap, then the pre-coronavirus ATH (black line), then one of the red lines you can see in the chart. These are the most important points if we see the confirmation of a pullback ahead.
And if you liked this analysis, please support it, and follow me to keep in touch! Every day I’ll share my thoughts with you, and I’m sure you’ll find something helpful.
Stay safe.
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