Todays analysis – SPX – breaking bearish from its long-lived multi-month ascending channel
Points to consider:
- Channel support breached
- Testing daily support and 200 DMA
- Bearish price action
- RSI breaking below 50
- Stochastics oversold
SPX needs a daily body candle close below channel support for a bearish bias in the market.
Currently retesting daily support, in confluence with the 200 MA where price previously held support. However a weak bounce, forming multiple bearish engulfing candles, price is likely to break down further.
Breaking below $2960 will form a technical lower low and an S/R flip at daily support confirms a trend reversal, solidifying the bearish bias.
RSI has broken below 50, indicative of increasing weakness in the market. Stochastics are oversold and may remain oversold for some time.
Overall, in my opinion, further price development is likely to confirm trend reversal as price retraces lower from these levels, validating structural support as the next technical target.
What are your thoughts? Let me know in the comments below!
And if you’ve read this far - thank you for following my work!
As always,
Focus on you, and the money will too!
Points to consider:
- Channel support breached
- Testing daily support and 200 DMA
- Bearish price action
- RSI breaking below 50
- Stochastics oversold
SPX needs a daily body candle close below channel support for a bearish bias in the market.
Currently retesting daily support, in confluence with the 200 MA where price previously held support. However a weak bounce, forming multiple bearish engulfing candles, price is likely to break down further.
Breaking below $2960 will form a technical lower low and an S/R flip at daily support confirms a trend reversal, solidifying the bearish bias.
RSI has broken below 50, indicative of increasing weakness in the market. Stochastics are oversold and may remain oversold for some time.
Overall, in my opinion, further price development is likely to confirm trend reversal as price retraces lower from these levels, validating structural support as the next technical target.
What are your thoughts? Let me know in the comments below!
And if you’ve read this far - thank you for following my work!
As always,
Focus on you, and the money will too!