SPY Daily S/R| 21 MA| Bearish PA|Low Volume|.618 Fibonacci

23 сент. 2020 г.

Evening Traders,

Today’s analysis – SPY- confirming support on Daily S/R, short term bounces are likely to respect .618 Fibonacci.

Points to consider,
- Bearish price action
- Daily S/R (Support)
- .618 Fib Resistance (21 MA Confluence)
- RSI below 50
- Stochastics buy cross
- Volume below average

SPY’s immediate price action is bearish from swing high; this allows us to have a bearish bias.

The Daily S/R has held as support, price action respected the 200 EMA in confluence.

An immediate rejection is plausible at the .618 Fibonacci in confluence with the 21 MA. Price action is likely to range between local S/R and Daily S/R.

The RSI is currently below 50, indicative of short term weakness. Current stochastics is showing a buy cross which has coincided with the immediate bounce.

Volume profile is currently below average, price action rising on low volume is typically bearish, thus an influx is probable.

Overall, in my opinion, this short term bounce is likely to respect the 21 MA on first attempt. Price is likely to range between Daily S/R and Local S/R.

Hope this analysis helps

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And remember,

Timing, perseverance, and ten years of trying will eventually make you look like an overnight success. – Biz Stone