We warned about the BEAR TRAP (again!)
In my last analysis, I warned about the movement SPX was doing, which was very similar to the last bear trap I also warned here. I’ll put the links to my previous analyses bellow, and I invite you to follow me to keep in touch with our trades and analyses.
It was a perfect déjà vu. Again, I saw a lot of people calling it a short trade, but we knew we should be careful here, and what I saw was exactly the same thing as the previous time. And I’ll repeat what Charles Dow said about a century ago: “Trends Persist Until a Clear Reversal Occurs”.
Let’s take a look at the hourly chart:
Two days ago, when SPX did that bearish candle in the daily chart the price was just doing a pullback in the hourly chart. That’s why is so important to look at different timeframes. But what’s incredible is that the same thing happened before, on Apr 28, and I warned about it too. Again, all the links bellow.
But, what now? The real challenge here is to surpass the pink line in the daily chart, because that would trigger a pivot. Also look at the weekly chart:
If we close above the 61.8% fib retracement it will be perfect. Maybe a V pattern in the weekly chart? That’s too optimistic in my opinion but yes, it's possible.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
It was a perfect déjà vu. Again, I saw a lot of people calling it a short trade, but we knew we should be careful here, and what I saw was exactly the same thing as the previous time. And I’ll repeat what Charles Dow said about a century ago: “Trends Persist Until a Clear Reversal Occurs”.
Let’s take a look at the hourly chart:
Two days ago, when SPX did that bearish candle in the daily chart the price was just doing a pullback in the hourly chart. That’s why is so important to look at different timeframes. But what’s incredible is that the same thing happened before, on Apr 28, and I warned about it too. Again, all the links bellow.
But, what now? The real challenge here is to surpass the pink line in the daily chart, because that would trigger a pivot. Also look at the weekly chart:
If we close above the 61.8% fib retracement it will be perfect. Maybe a V pattern in the weekly chart? That’s too optimistic in my opinion but yes, it's possible.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
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