November 17, 2010

SPY Support and resistance levels

CHART-III
  • Price fills the GAP and trades above 200 hour moving average.
  • If price sustains above 200 hour moving average price will take out 120.66.
CHART-II
  • Channel support line is acting as resistance as discussed in the below chart.
  • Only if price moves above 118.70(day high) some upward momentum can be seen.
CHART-I
  • If SPY is to move up price has to break through multiple resistances.
  • First one is the channels support line from which it broke down. Then if it manages to go up the 200 hour moving average will be the next hurdle.
  • If the 200 hour moving average is taken out then the GAP will be faded.
  • On the contrary break of 117.59 will be negative and take SPY to new lows.

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