Home Forex Chart Art: Double Bottom Patterns on S&P 500 Index & NZD/JPY

Chart Art: Double Bottom Patterns on S&P 500 Index & NZD/JPY

by admin
0 comment

Looking for an inverted setup?

We spotted some of these on the S&P 500 Index and the NZD/JPY 4-hour chart!

We recommend keeping these levels on your radar.

NZD/JPY 4-hour chart

don’t look now But NZD/JPY has already broken through the double bottom neckline!

This means that the pair is in a reversal from the downtrend and could go as high as the chart pattern, or about 300 pips higher.

The price has broken through the 200 SMA dynamic inflection point, paving the way for a move to the next 87.00 handle.

But before rushing into long positions, be aware that the technical indicators still reflect a bearish mood.

For one, the 100 SMA is below the 200 SMA, indicating that the selling momentum is still there. The difference between the moving averages has widened further, indicating that downward pressure is building.

Moreover, the Stochastic has just hit the overbought zone, indicating that buyers are exhausted.

A fall could mean that sellers are regaining the upper hand, driving NZD/JPY to lows of 81.00.

S&P 500 Index (SPX500) 4 Hour Chart

S&P 500 Index (SPX500) 4 Hour Chart

Currently, this reversal play in the S&P 500 index may take some time to unfold.

The stock index is about to make another test of the neckline at 3,800.00 and surpass it to complete a double bottom formation.

If so, we may see an uptick as large as the reversal pattern!

On the other hand, the S&P 500 Index could fall below the 3,600.00 mark if resistance is maintained again.

As you may have noticed from the chart above, the neckline coincides with the 200 SMA’s dynamic inflection point, which adds strength to the ceiling.

The 100 SMA is also below the 200 SMA, confirming that the path of least resistance is downwards. In addition, the Stochastic is approaching the overbought territory, suggesting the bulls need a break.

Do you think the risk-on flow will favor further gains in US stocks?

Or will high-yielding assets fall further?

You may also like

Copyright ©️ All rights reserved. | Investors Radar