HomeTradingTradesSPY 2-15-16

Over the past two trading days we’ve seen a new XABCD pattern forming on the 15min TimeFrame. Of which the AB=CD PRZ acted as resistance Friday afternoon until about 14:30. With a close above a PRZ, higher prices can be expected, while observing the XA projected levels.

If it breaks above last weeks high then our next level of resistance is the 113% to 127%XA range 189.3 to 190.3 , with the 88.6%XA of the daily chart in between.

We mentioned that last week Thursday was a TD-camouflage buy candle. It is a good probability that the day after a TD-camo you will see a higher high. The little green arrows on the daily chart are depicting TD-camo candles, as you can see 5 out of 7 occurrences resulted indeed in a higher high the next day. Both the A point and the C point in the current probable XABCD pattern are camo candles.

With Friday’s close above the entry makes a new CD leg probable, which would have a PRZ starting at 196.33, which is inline with a prior AB=CD PRZ, 61.8%XA and the gap of 10/5/15.

Be aware however that below the current lows looms the 127%XA and 161.8%XA of the orange pattern.

 

 

 


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