Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.

Join Dstockmarket Telegram Group

Join Dstockmarket Facebook Page

Chart Lessons From SPX - 60 Min Ascending Triangle And Reverse HnS

In this chart lesson we will learn how the 60 min ascending triangle and reverse head and shoulders that appear in the S&P 500 hinted of a reversal and new high.

Let us start off with the 60 min chart of the S&P 500 futures. The S&P had a correction but it eventually formed a 60 min ascending triangle.

The 60 min ascending triangle can also be used as a reversal pattern.

Note that the SPX also broke above a 60 min downtrend line. This told us that it wanted to change trend from bearish to bullish in the 60 min chart.

A large green candle formed as the SPX broke out of the ascending triangle.

The SPX then formed a bullish cross where the 60 min 20 MA goes back above the 60 min 50 MA.

After some time, the SPX also formed a 60 min reverse head and shoulders. I have drawn it in blue colour.

The reverse head and shoulders can actually be used to set a target. If we take the height of the pattern from the neck and project it upwards, we can find a possible target.

As you can see, the SPX has already met the reverse head and shoulders target. The SPX also made a new high.

Sometimes its good to have a look at the daily chart as well.

As you can see, the SPX is in a daily uptrend. The SPX dropped to the daily 20 MA and this is where the 60 min ascending triangle appeared.

The 20 MA can usually be a support area or reversal area when a stock or index is in an uptrend.

Indices that are in an uptrend tend to go higher and dips and breakouts can be bought.

Conclusion

The combination of two patterns in the 60 min chart can often be very powerful. In this case, the 60 min ascending triangle hinted of a reversal and the 60 min head and shoulders helped to set a possible target.

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Technical Analysis Of the US Stock Market July 2020

    Jul 13, 20 07:44 AM

    Here is a technical outlook for the US stock market.

    Read More

  2. Technical Analysis Of The KLCI July 2020

    Jul 13, 20 07:44 AM

    Here is a technical outlook for the KLCI.

    Read More

  3. KLCI Analysis June 2020

    Jun 29, 20 08:04 AM

    Technical analysis of the KLCI for the month of June 2020. What is likely to happen? Read here.

    Read More

  4. US Stock Market Analysis For The Month Of June 2020

    Jun 29, 20 08:03 AM

    Well, sell in May did not materialize for the S&P 500 but the market continues to chugg higher. What is in store for us this month?

    Read More

  5. US Stock Market Analysis April 2020 - The Coronavirus Impact

    Apr 30, 20 07:49 AM

    What is the stock market likely to do from this impact of the Coronavirus? Will it continue to fall or a bottom is near. We will use charts to guide us.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.