S&P Analysis Week of 12/27/2020: Goodbye 2020
It's the last week of the year and it looks like the market will be making a move here soon.
Price is in an uptrend but consolidating inside a wedge pattern. This means price is building energy and ready to make a move to the upside or downside. Since it's difficult to predict, I would wait on the sideline until confirmation.
The trend is your friend until the very end, so I will not be shorting unless there is a major technical breakdown and trade setup 2 occurs.
Otherwise I think the trade setups described are easy to read and understand.
Do not play the breakouts, wait for the retrace and resumption. My experience is that 90% or more of breakouts result in a retrace or failed breakout. Wait for the confirmation.
Safe trading and happy new year!
Price is in an uptrend but consolidating inside a wedge pattern. This means price is building energy and ready to make a move to the upside or downside. Since it's difficult to predict, I would wait on the sideline until confirmation.
The trend is your friend until the very end, so I will not be shorting unless there is a major technical breakdown and trade setup 2 occurs.
Otherwise I think the trade setups described are easy to read and understand.
Do not play the breakouts, wait for the retrace and resumption. My experience is that 90% or more of breakouts result in a retrace or failed breakout. Wait for the confirmation.
Safe trading and happy new year!
