It's been a while since my last update on SPX500. I have been waiting for SPX to retrace back to around $2695 but unfortunately it didn't happen. And, the huge drop that happened 2 days ago was something that I certainly not expecting.
Something that I want you to notice is the drop 2 days ago, has confirmed the formation of the massive descending triangle. Does the triangle look familiar to you? Yes! it looks just like the crash pattern on Cryptos. And if you look closely, we are far away from reaching the apex of the triangle, in which is pointing at the 1.272 retrace at $2433.
If you have followed on my idea on SPX since the beginning, I have mentioned that my ultimate target is @ $2386. This is also the price level of the long term trendline. However, by looking at the descending triangle, it looks like SPX might not reach that price level.
Right now, I will wait for SPX to retrace back to test the top of the descending triangle at around $2628 and if SPX gets rejected I will place my short positions and take my profits around the $2540 price level.
Taiwan Bear
****************************************************************************************** Please note this post is provided for informational purpose only. It is not a financial advice to buy/sell.
Some tips for you: - Set up an entry/exit strategy for every trade, with the ideal risk/reward ratio (2+) - Understand that every trade carries a risk, and don’t expect you can make profits from every trade
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Please forgive me. The Fib setup in black was not set to the correct price level. Below is the correct one.
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Rejected by descending triangle
SL: 2665. TP: 2540-2525 Risk/Reward: 5.6+
Đóng lệnh: dừng lỗ
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SL hit, 0.72% loss.
Will find another entry point, probably around $2685, which I have highlighted in yellow.
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Or if you are an aggressive trader, now can be a good time to open another short position. Recommended SL $2690, TP 2540. Risk/reward ratio around 5.