DJI, MSFT, AMZN, IWM & SPY Analysis Chart Examples with Candlesticks
Price action has to be considered with S/R levels, it means candlesticks, they bring signals that help to validate if a level is likely to set a reversal or if it going to be breached.
$Dow Jones(.DJI)$ (2 Hours): Breaching the Central Level This two hours timeframe for Dow Jones shows how $39,651, the central level was breached with a conviction candle (belt hold), price started a decline that ended in the second support level (there are 3 resistance and 3 support levels next to the central level provided, in this case $39,059 supported price:
$Microsoft(MSFT)$ (2 Hours): Candlesticks at S/R Levels See the following example for MSFT, and the first candle that opened the month of April finding rejection at $425... The shooting star found rejection at $425.7, price moved down to the $417.4 level finding support, printing a hammer candle that suggested bullish bias, anyway the central weekly level invalidated the bullish thesis in this example at $422.
$Amazon.com(AMZN)$ (2 Hours): Candlestick Warnings Check the green long candle... the $182 level was temporarily crossed just to retrace and drawing a shooting star candle. Two days later there is another bullish attempt but a hanging man warns about a retrace. AMZN and MSFT provide example of choppy price action but they’re useful to highlight candle formations at S/R lines.
$iShares Russell 2000 ETF(IWM)$ (2 Hours): Combining with Oscillators Use support and resistance levels in conjunction with other technical indicators like moving averages, RSI, or MACD for confirmation. IWM observed resistance at $206.2, four failed attempts to cross it or four candles stopping their move at that level validates its significance in the chart, on the other side the Stochastic oscillator starts to curl down indicating momentum is fading and reducing probabilities of a price jump.
$SPDR S&P 500 ETF Trust(SPY)$ (Daily): Multiple Tests and Reversals The next examples for SPY shows several attempts to cross the $516 level in March; after 6 occasions price finally jumped above that level, just to find rejection close to $525 and sealing a decline with a gravestone. The following week, $517 provided support. Bear in mind that these lines are provided ahead of the week, they are not included in the chart after the price action occurred.
For whom haven't open CBA can know more from below:
🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!
Find out more here：
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
