SPY - Short term bullish - Quick Trade
Hello Friends,
SPY has shed a lot of value in a week but there seems to be some good news if you're looking for a very short term bullish trade. We will have to understand supply/demand levels on multiple time frames.
In a daily TF, Price opened gap down, approached a daily/weekly demand zone and closed within top 33.3% of a candle range(Bullish Pin bar candlestick). Bullish pin bar with a good volume suggests the presence of demand. There's a gap to be filled. So our first target is at the upper bound of a gap around 373.44. I like to use anchored VWAP as a dynamic support/resistance and also as an additional confirmation for the target. In a downtrend, I drop anchored VWAP from a recent swing high to find dynamic resistance level which is currently at 386. There's a visible supply zone between 381 and 390. So if price is able to breach our first target then the next safe target would be at 381. Target levels are marked on the chart below.
Zooming into 45 minutes TF, it is visible that before price opened gap down, there was a supply zone forming. Our first target is actually a lower bound of a supply zone. Additionally, a bullish RSI divergence is also visible which is an additional confirmation for price reversal.
Similar confirmations are found in 15 minutes TF as well.
Remember, Overall market is still bearish so you have to be very nimble while trading against the trend. A good trader always find opportunity in any market conditions!
Do you agree with my analysis? Please let me know your thoughts by commenting below and follow me for more such ideas. Happy and safe trading! :)
SPY has shed a lot of value in a week but there seems to be some good news if you're looking for a very short term bullish trade. We will have to understand supply/demand levels on multiple time frames. In a daily TF, Price opened gap down, approached a daily/weekly demand zone and closed within top 33.3% of a candle range(Bullish Pin bar candlestick). Bullish pin bar with a good volume suggests the presence of demand. There's a gap to be filled. So our first target is at the upper bound of a gap around 373.44. I like to use anchored VWAP as a dynamic support/resistance and also as an additional confirmation for the target. In a downtrend, I drop anchored VWAP from a recent swing high to find dynamic resistance level which is currently at 386. There's a visible supply zone between 381 and 390. So if price is able to breach our first target then the next safe target would be at 381. Target levels are marked on the chart below.
Zooming into 45 minutes TF, it is visible that before price opened gap down, there was a supply zone forming. Our first target is actually a lower bound of a supply zone. Additionally, a bullish RSI divergence is also visible which is an additional confirmation for price reversal.
Similar confirmations are found in 15 minutes TF as well.
Remember, Overall market is still bearish so you have to be very nimble while trading against the trend. A good trader always find opportunity in any market conditions!
Do you agree with my analysis? Please let me know your thoughts by commenting below and follow me for more such ideas. Happy and safe trading! :)
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