Alberto Costa reviews SPY's breakout above resistance on July 22, 2018. Price has broken out and is now retesting the zone as support. He suggests taking longs while watching next week for confirmation, but warns against adding if price falls back into consolidation.
Hi, welcome to this new video. This is an update after the video. Follow the spy in that video. If you remember, I was saying that we can look at the S&P 500 to decide if we should take long or short positions. And at that time I was saying that the S and P was consolidating and it was going near a resistance level. If you can see these lines. By the way, resistance and support are not actually lines but zones. That's why we have two here. So the S&P touch once, twice, three times the resistance level. And at the time of my last video we were around here. So I was saying a good way to take long position because the price may go near the resistance, then it may go back again. But something happened a few days ago. There was a breakout. You can see here, there was a candle that broke above the resistance level. And even a stronger indication is this candle that opened and closed above the resistance. So in this situation I will take long positions. But you see here, the price now is going down and is testing this X resistance that is now a support. So again, in this case I will still take long position. But I will watch the next week to see if this line is now this zone actually is a new support and the price is bouncing and going up. Then is an even stronger indication for long position. But in case the price is breaking down and entering again in this consolidation area, then I will be careful in case I want to take more long positions. So we have to wait next week to see what happens with this video. Just wanted to give you this update because I've seen this breakout happening. Let's see next week. Thank you for watching and see you next time.
