Technical Analysis:
SPX500 futures has rallied through 4326/27 all-time high yet again today. It seems as if there is no respite for bears as each potential resistance is being taken out every second day. We bring an hourly chart setup today for short term wave study.
SPX500 seems to have terminated an ending diagonal structure since 4035 lows registered on May 13, 2021. The price action might be producing a throw over now and is expected to reverse lower if the pattern has been identified correctly.
Within the diagonal structure, wave iv had terminated around 4130 levels as shown here. If the above ending diagonal structure holds well, SPX500 would drift lower toward 4130 levels at least. This would be considered as the first step towards a potential reversal ahead.
Furthermore, SPX500 might have produced a diagonal structure within wave v as well. The converging potential ending diagonal pattern has been highlighted. If the above is correct, bears might be targeting below 4275 in the near term.
The above structure still remains probable and we need to receive price confirmation below 4275 at least to instil further confidence on the downside. Traders might prepare to go short for now and a break below 4275 would confirm.
Prepared by
Finacademy Technical Team
Related Articles
Gold prepares to take on $1812-30 zone near term
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
US dollar index is bearish against 97.00
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is approaching resistance around 114.40-50
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.
Recent Comments