S&P500 at Support Zone
Atualizado
There are two types of support and resistance (S/R) that we can see on the charts- Dynamic and static. Dynamic S/R levels are generally referred as trendlines whereas Static S/R levels are represented by horizontal lines.
You must have frequently heard that a previous resistance area, once taken out by the buyers, may act as support in future. Similarly, if a support area is broken down, it may act as a resistance. There are various reasons which have already been discussed in a previous tutorial (read below).
https://www.tradingview.com/chart/NIFTY/wiK2D0Gu-Support-and-Resistance-Flipping-Roles/
In the S&P chart, we can see that the price is currently at a dynamic support level (trendline) and a potential static support level- around 4448, which was previously acting as resistance in the middle of June.
🚀Bullish Scenario
If we observe the price action, there is lack of momentum on the downside. Which suggests that sellers are not that strong and buyers may still be accumulating in this downwave.
A weekly up-bar (close at or near its highs) from here would confirm this view.
Immediate Upside resistance would be at 4527 and then 4576 gap zone.
After that we have 4607 highs and then 4637 and 4818 swing highs.
🚀Bearish Scenario
The bearish scenario would be the break of 4400 round number.
In that case we will have an immediate support at around 4385.
Below this level there are 4328 and 4195 that may act as support.
Thanks for reading.
Do like and share in the comment section which S/R level do you prefer to trade, dynamic or static?
Disclaimer: The idea is just for educational purposes and not an investment advice. Apply your due diligence before trading with your hard-earned money.
You must have frequently heard that a previous resistance area, once taken out by the buyers, may act as support in future. Similarly, if a support area is broken down, it may act as a resistance. There are various reasons which have already been discussed in a previous tutorial (read below).
https://www.tradingview.com/chart/NIFTY/wiK2D0Gu-Support-and-Resistance-Flipping-Roles/
In the S&P chart, we can see that the price is currently at a dynamic support level (trendline) and a potential static support level- around 4448, which was previously acting as resistance in the middle of June.
🚀Bullish Scenario
If we observe the price action, there is lack of momentum on the downside. Which suggests that sellers are not that strong and buyers may still be accumulating in this downwave.
A weekly up-bar (close at or near its highs) from here would confirm this view.
Immediate Upside resistance would be at 4527 and then 4576 gap zone.
After that we have 4607 highs and then 4637 and 4818 swing highs.
🚀Bearish Scenario
The bearish scenario would be the break of 4400 round number.
In that case we will have an immediate support at around 4385.
Below this level there are 4328 and 4195 that may act as support.
Thanks for reading.
Do like and share in the comment section which S/R level do you prefer to trade, dynamic or static?
Disclaimer: The idea is just for educational purposes and not an investment advice. Apply your due diligence before trading with your hard-earned money.
Nota
Seems price will not be able to close strong on weekly basis. It has already broken the static as well as dynamic supports. It is also below the immediate support of 4385. Next levels of support as mentioned above are 4325-4328 zone and then near 4200 round number, which is also a 50% retracement of the entire run since March2023.Nota
SPX just shied of 4328 target and made 4335 as a swing low and pulled back up. May be its a retest attempt of the breakdown level near 4440-4450. Any weakness there may once again take it back down.Nota
Nice retest of the breakdown level which has also become a confluence zone for the broken uptrendline, the horizontal support and the downtrendline. Possible levels that I have been mentioning- 4328 and if it breaks then 4200. 
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
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🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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