S&P has crossed below the long term channel up for the first time since it started in October.
Levels to watch:
- The Resistance is at 3340 while the Support (short term) at 3235.
- The price not only crossed the ascending support of the channel up but also the MA200 on the 4H chart. In fact it crossed it twice in 3 days, which is something we haven't seen for a long time.
- The MA50 (4H chart) has rejected yesterday's bullish attempt and may turn into a resistance.
Projection:
- This is a mix of the strongest bearish outlook since last October. The MA50 (as a resistance) and the MA200 (as a support) are converging dangerously and may form the first Death Cross since October. With the coronavirus threat growing, if the 3235 short term support breaks, we expect a strong sell-off towards the 3070 long term support. Only a break above 3340 restores the bullish sentiment back to the market, as so far every rise is getting sold.
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Levels to watch:
- The Resistance is at 3340 while the Support (short term) at 3235.
- The price not only crossed the ascending support of the channel up but also the MA200 on the 4H chart. In fact it crossed it twice in 3 days, which is something we haven't seen for a long time.
- The MA50 (4H chart) has rejected yesterday's bullish attempt and may turn into a resistance.
Projection:
- This is a mix of the strongest bearish outlook since last October. The MA50 (as a resistance) and the MA200 (as a support) are converging dangerously and may form the first Death Cross since October. With the coronavirus threat growing, if the 3235 short term support breaks, we expect a strong sell-off towards the 3070 long term support. Only a break above 3340 restores the bullish sentiment back to the market, as so far every rise is getting sold.
If you like this idea give us a like, follow and share your thoughts in the comments section below. Remember to stay tuned for future technical analysis , news, updates, and more from PrimeXBT!