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As experts in the field of trading and Wall Street, we are excited to provide you with unique information that will take your investing game to the next level. Today, we are discussing key resistance and support levels in the stock market that you need to be aware of for successful trading.
Identifying Resistance Zone: 2,345 to 2,350
One critical price area to watch for resistance is between 2,345 and 2,350. This area is slightly above the 50-Day Moving Average (MA) and completes an initial target for a rising ABCD pattern. Last Friday’s price range, with a high of 2,388, started with a bullish breakout but ended with a failed breakout and bearish close. To see a sustained bull reversal into new highs, a decisive rally above 2,388 may be necessary. Keep an eye on these price patterns as they indicate potential market movements.
Signs of Weakness: Below 2,301
Weakness in the market could be signaled by a drop below today’s low of 2,301, and further confirmed with a decline below last week’s low of 2,287. The recent swing low of 2,277 is a crucial level to watch as it defines the current uptrend structure. If this level is tested again, it could lead to lower prices and indicate a shift in market dynamics towards bearish territory. Stay vigilant for these key levels that could impact your trading decisions.
Lower Pivots and Trendline Importance
Downside pivots are identified at 2,252, 2,211, and 2,195, with particular importance placed on 2,252 given its proximity to the uptrend line. The trendline gains significance following a successful resistance test, indicating potential downside movement towards the uptrend line. Understanding these chart patterns and price dynamics can provide valuable insights into market behavior and help you make informed trading choices.
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