S&P Held in Mini Consolidation
The S&P has been held up well by the $3000 round number, the 200 simple moving average and a
major resistance turned support level from the 26th July 2019 high at $3027. This level was a previous
all-time high and is now acting as a strong level of support and has been responsible for keeping
price from falling recently.
Following on from the impulsive move we saw from the 23rd March 2020 to 8th June 2020 where we
saw price climb from $2191 to $3233, exhaustion has kicked in and we can now see price is being
held in a consolidation zone.
It would be ideal to see uptrends that just continue to rise and rise but in the markets that is not possible.
There will always be pullbacks and periods of consolidation in a trend and this is just what we are
currently experiencing.
The base of the consolidation zone has formed at the support levels mentioned above and if the low
of the consolidation at $2965 is broken then we may start to see bearish moves in the markets.
If the consolidation resistance is broken, which would be ideal as we are in an overall uptrend,
then we should continue to see further bullish moves in the markets.
As the uptrend is still in play, we can continue to look for long opportunities in stocks but we are still
waiting to see a breakout to the upside of consolidation.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
major resistance turned support level from the 26th July 2019 high at $3027. This level was a previous
all-time high and is now acting as a strong level of support and has been responsible for keeping
price from falling recently.
Following on from the impulsive move we saw from the 23rd March 2020 to 8th June 2020 where we
saw price climb from $2191 to $3233, exhaustion has kicked in and we can now see price is being
held in a consolidation zone.
It would be ideal to see uptrends that just continue to rise and rise but in the markets that is not possible.
There will always be pullbacks and periods of consolidation in a trend and this is just what we are
currently experiencing.
The base of the consolidation zone has formed at the support levels mentioned above and if the low
of the consolidation at $2965 is broken then we may start to see bearish moves in the markets.
If the consolidation resistance is broken, which would be ideal as we are in an overall uptrend,
then we should continue to see further bullish moves in the markets.
As the uptrend is still in play, we can continue to look for long opportunities in stocks but we are still
waiting to see a breakout to the upside of consolidation.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
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