Bullish Momentum Meets Overbought Conditions
Exhaustion Signals Flash - S/R Levels for June 30th - July 4th
Support and Resistance are key price levels on a chart that act as potential barriers, temporarily stopping or reversing the direction of a price trend.
Support: A price "floor" where buying interest is typically strong enough to overcome selling pressure, causing a downtrend to pause or reverse upwards.
Resistance: A price "ceiling" where selling pressure is typically strong enough to overcome buying interest, causing an uptrend to pause or reverse downwards.
The levels published each Friday are modeled to provide a predictive framework for the subsequent week's price action. The efficacy of this backtested model lies in its integration of both weekly and monthly levels, which creates a more comprehensive and dynamic map of support and resistance.
The past week provided examples of its accuracy: the $616 level acted as a resistance zone for SPY, just as the $440 level did for DIA (the Dow Jones tracking ETF) with remarkable precision.
For those interested, a comprehensive guide on how to use these levels is available to everyone in the three publications linked below.
Combining S/R Levels with Technical Analysis: DIA Case Study
For this ETF that mirrors the Dow Jones, the defining line in the sand is $432.4. Continued trading above this level supports a bullish push towards the $445.1 target, unless $441.4 sets resistance as a monthly level considering the bullish overextension that is due for a pullback. The levels presented at the top right of the chart are a segment of the ones presented below. The latest candle completely above the Bollinger band is a bearish reversal sign as highlighted. A failure to hold $432.4 would likely lead to a bearish move down to $425.1 as weekly support. The overextended levels are in the chart:
This publication consistently analyzes the following securities to provide a broad market perspective and empower your trading decisions:
Indices & Futures: SPX, NDX, DJI, IWM, ES=F, NQ=F
ETFs: SPY, QQQ, SMH, TLT, GLD, SLV, DIA, SH, PSQ
Major Stocks: AAPL, MSFT, GOOG, AMZN, NVDA, META, TSLA, BRK.B, LLY, UNH, AVGO, COST, PFE, PLTR, NFLX
Crypto & Related: Bitcoin, ETH, IBIT, MSTR
Leveraged ETFs: TQQQ, SQQQ, UDOW, SDOW, UPRO, SPXS, URTY, SRTY
Subscribe now, and unlock all the educational content, the levels for next week, and the Weekly Compass with charts and price targets that is published on Saturdays. Price action is showing exhaustion, have the right tools to navigate it.
Summer Camp Levels: Until July 19th, I will model the support and resistance levels for 5 additional securities. These five "rotating slots" will be filled by stocks chosen by you, both free and paid subscribers.
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WEEKLY LEVELS FOR JUNE 30TH - JULY 3RD:
Following the same principle of the DIA, the analysis for SPY, QQQ and AMD continues as navigation reference for subscribers, as the levels for 40+ securities: