Hey all! There is a possibility of a BEARISH SHARK pattern forming on the hourly chart of SPY.
I marked the Potential Reversal Zone (PRZ) with a reddish rectangle box loosely. The critical levels are the 0.886 XC, 2.0 AB and 2.24 AB levels. The price action is likely to reverse around those levels if the pattern completes. There is a gap around the $330 level. There can be potential gap fill. So, that will be my target area.
Please watch the price action closely and don't ever act before the pattern completes hitting those levels above. Ideally, it should hit all three and reverse after 2.24 AB, but it can hit only one or two, as well. If you want to take more risk, you can enter a short position as soon as price crosses 0.886 level.
Have a great rest of the week!
I marked the Potential Reversal Zone (PRZ) with a reddish rectangle box loosely. The critical levels are the 0.886 XC, 2.0 AB and 2.24 AB levels. The price action is likely to reverse around those levels if the pattern completes. There is a gap around the $330 level. There can be potential gap fill. So, that will be my target area.
Please watch the price action closely and don't ever act before the pattern completes hitting those levels above. Ideally, it should hit all three and reverse after 2.24 AB, but it can hit only one or two, as well. If you want to take more risk, you can enter a short position as soon as price crosses 0.886 level.
Have a great rest of the week!