How Far Will The Indices' Correction Go?
My original analysis of the S&P began on the daily chart but I'm gonna use the 4-Hour chart to better illustrate my point.
On the daily chart, a demand level was formed during the mid-part of July. I marked out a specific point but that whole breakout area can be considered underlying support.
What I see here is that we are still in a major uptrend, despite what has happened these past few months. In this case, however, I still think that the corrective downmove still has some room to run. With that being said, if price is able to clear out this current supply zone (4000-4075), then I see price getting up to the 4160-4200 area. This may be the more likely scenario since daily demand appears to be in control. However, if weakness occurs at the present level (which is a possibility since we're hitting supply), then I don't see any significant demand coming into the market until we hit the 2900 area.
Conclusion: From a long-term perspective, this is a wait-and-see type of deal. For the short-term trader, there are many opportunities to be found whichever direction prices move. One opportunity I see is a long at 4020.
On the daily chart, a demand level was formed during the mid-part of July. I marked out a specific point but that whole breakout area can be considered underlying support.
What I see here is that we are still in a major uptrend, despite what has happened these past few months. In this case, however, I still think that the corrective downmove still has some room to run. With that being said, if price is able to clear out this current supply zone (4000-4075), then I see price getting up to the 4160-4200 area. This may be the more likely scenario since daily demand appears to be in control. However, if weakness occurs at the present level (which is a possibility since we're hitting supply), then I don't see any significant demand coming into the market until we hit the 2900 area.
Conclusion: From a long-term perspective, this is a wait-and-see type of deal. For the short-term trader, there are many opportunities to be found whichever direction prices move. One opportunity I see is a long at 4020.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.