Welcome to Extreme Investor Network, where we provide unique and valuable insights into the stock market, trading, and Wall Street. Today, we take a closer look at the recent upside breakout of consolidation in the market.
The recent advance triggered a breakout of a falling flag pattern, indicating a potential bullish move ahead. This pattern is similar to a falling bullish wedge, suggesting a continuation of the upward trend. With a swing low now indicated at 2,315, a rising ABCD pattern has emerged on the chart, pointing towards an initial target of 2,487. This target is confirmed by several Fibonacci levels, with additional targets at 2,462 and 2,480 from longer Fibonacci measurements.
The 20-Day MA is now expected to act as a crucial support level, given today’s decisive breakout. The day’s close will provide further clarity on the strength of the move, while Thursday’s low of 2,353 serves as a near-term support level to monitor. A break below this level could signal a drop below the 20-Day MA.
Additionally, the 50-Day MA has played a significant role in providing support over the past six days, with a swing low at 2,315 during this period. Watching this indicator during pullbacks is important, as a hold above the 50-Day MA could indicate higher prices and a continuation of the bull trend.
As we navigate through the current market environment, it’s essential to stay informed about economic events that may impact trading decisions. Be sure to check out our economic calendar for a complete overview of today’s events.
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