2022/02/10 06:27 AM – SP 500 MINI FUT – H4 – POTENTIAL DOUBLE TOP IN PROGRESS, COUPLED WITH A RSI BEARISH DIVERGENCE… !

SP500 MF-H4-POTENTIAL DOUBLE TOP IN PROGRESS ! by Ironman8848 on TradingView.com

Following the nice rally seen over the last couple of days, recent price action triggered a potential double top formation in progress, coupled with a RSI bearish divergence and last but not least, the last H4 candle isshowing also a BEARISH ENGULFING PATTERN.

Therefore, upcoming candle price action should be watch at very carefully as a failure to recover and close at leastabove the middle level (@ 4’574) of the last black candle or better above the former high, which would trigger respectively, either a PIERCING LINE PATTERN or even better a BULLISH ENGULFING PATTERN,would be the second signal of a trend reversal calling for lower level towards :

1) 4’535
2)4’515-4’510 (H4 cluster support)
3) 4 hours clouds
4) 4’442.50 ( double top trigger level & H4 clouds bottom

A breakout of the 4’442.50 level would confirm the double top , targeting 4’295.25 or a retest of former congestion support seen at the end of January !

Globally, watch the 4 hourly clouds as the major support area and watch at the daily clouds (in overlay) as the major resistance area in this 4 hour/1 day time frame.

As usual, monitor closely price action in shorter intraday time frame which will help you to detect early signal(s) in order to validate or invalidate the implications previously mentioned.

Have a nice trading day

Ironman8848 & Jean-Pierre Burki

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All views expressed on my analysis are my own and do not represent the opinions of any entity, whatsoever with which I have been, I am now or I will be affiliated with. Any action you take upon the information on those analysis is strictly at your own risk and should not be considered as an advisory. The author assumes no responsibility or liability for any errors or omissions in the content of his analysis. The information contained is provided on an «as is» basis, with no guarantees of completeness, accuracy, usefulness or timeliness and without any warranties of any kind whatsoever, express or implied. 

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