Hi Guys,
I'm really not surprised with the big bullish reversal this morning. It just seems inevitable now every time we start thinking that maybe the market is going to have the much needed correction or just few % pullback. With most leading stocks extended and needing to base and reset, a correction has to be viewed as a good thing right? Obviously not everybody thinks so.
Anyway, I've highlighted on the chart the next area I think may provide some good sell opportunities for the S&P, should price crack the high again, which judging by market conditions looks more likely than not.
The highlighted zone is extensions and retracement of important price points that converge in that zone.
There is also a Deep Crab pattern with pretty good fib ratios, (which is one of the more rare patterns to occur in my experience) developing which finishes also at the top of the zone.
Price will also be heading back to the top of the rising wedge, where selling pressure has been evident.
Also I have altered the bottom lines of the wedge that was broken and now resembles more of a parallel channel which often is the case with the break of a wedge.
Safe Trading all
I'm really not surprised with the big bullish reversal this morning. It just seems inevitable now every time we start thinking that maybe the market is going to have the much needed correction or just few % pullback. With most leading stocks extended and needing to base and reset, a correction has to be viewed as a good thing right? Obviously not everybody thinks so.
Anyway, I've highlighted on the chart the next area I think may provide some good sell opportunities for the S&P, should price crack the high again, which judging by market conditions looks more likely than not.
The highlighted zone is extensions and retracement of important price points that converge in that zone.
There is also a Deep Crab pattern with pretty good fib ratios, (which is one of the more rare patterns to occur in my experience) developing which finishes also at the top of the zone.
Price will also be heading back to the top of the rising wedge, where selling pressure has been evident.
Also I have altered the bottom lines of the wedge that was broken and now resembles more of a parallel channel which often is the case with the break of a wedge.
Safe Trading all
Comment:
Any shorts on this beast has to be for quick profit taking. This thing has just made another ATH with a double bottom bounce with strong support just touching its 20ma. Im still looking for quick sell to add longs near bottoms/support. Need to see multiple breaks of support and at least 2 red daily closes below its 20 ma to feel confident that selling is the better option.
Comment:
Just waiting to get a touch of the highlighted zone to see what reaction we get because in my view the purple line represents probably the most important fib level thus far, the covid low to bear market high to bear market low 0.618 trend based extension.