Downtrend Begins: 3 Key Resistance Levels
Good Morning Investors:
It looks like the downtrend has started and I wanted to share my ideas on support/resistance levels on the way down. From the chart, I have identified 3 key resistance levels that have shown support previously.
-2730 (some resistance)
-2640 (stronger resistance)
-2200 (strongest resistance)
I believe we will test each level of support with more resistance as we progress down. I expect a bounce at the 2640 & 2200 levels, so be careful if you are shorting on the way down. As always, keep an eye on the VIX, RSI, & Volume levels as we approach each resistance. These key indicators will give guidance on a possible bounce or a clean break-through.
Lastly, I believe when we get closer to the 2200 resistance level, Trump will do everything in power to try and hold this line, as he doesn't want to make new market lows. I expect a Trump Pump to come in around this time and a battle between the Bears & Bulls to ensue. The Bears will most likely win, due to the state of the economy and pandemic, but expect a bounce here. Thanks for viewing my chart, and trade well.
JP - OUT
It looks like the downtrend has started and I wanted to share my ideas on support/resistance levels on the way down. From the chart, I have identified 3 key resistance levels that have shown support previously.
-2730 (some resistance)
-2640 (stronger resistance)
-2200 (strongest resistance)
I believe we will test each level of support with more resistance as we progress down. I expect a bounce at the 2640 & 2200 levels, so be careful if you are shorting on the way down. As always, keep an eye on the VIX, RSI, & Volume levels as we approach each resistance. These key indicators will give guidance on a possible bounce or a clean break-through.
Lastly, I believe when we get closer to the 2200 resistance level, Trump will do everything in power to try and hold this line, as he doesn't want to make new market lows. I expect a Trump Pump to come in around this time and a battle between the Bears & Bulls to ensue. The Bears will most likely win, due to the state of the economy and pandemic, but expect a bounce here. Thanks for viewing my chart, and trade well.
JP - OUT
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