SPX in Consolidation Bearish Outlook Unless Key Resistance Break

18 Okt

Technical Analysis:

• The price currently trades within a liquidity zone between 5,849 and 5,891, showing consolidation. A retest of this liquidity zone is likely, with a potential rejection if the price fails to break above 5,891.
  
• If the price breaks and holds above the 5,891 level, the next target would be the resistance line at around 5,939.
  
• On the downside, a rejection from the liquidity zone could send the price back down towards the support line near 5,825 or even further towards 5,781.
  Retest Possibility:
  A retest of the liquidity zone between 5,849 and 5,891 is probable. If the price holds below this zone, a bearish move is expected.
  
  Correct Direction:
• Bearish: If the price fails to break above 5,891 and the liquidity zone holds as resistance, the price is likely to move towards 5,825 or lower.
  
• Bullish: If the price breaks and closes above 5,891, a bullish continuation towards 5,939 is expected.
  
  The overall bias is bearish unless there is a confirmed breakout above the liquidity zone.
  
  Key Levels:
  Pivot Point: 5863
  Resistance Levels: 5891, 5915, 5939
  Support Levels: 5836, 5807, 5781
  
  Trend Outlook:
  Bearish below 5863
  Bullish above 5891