A BIG LOSS!!! Overlooked potential resistance!

 

There are two catches for this trade:

1. There are 2 bottoms tested on the 2nd day after trade entered.

    - A horizontal resistance formed by bottoms of October and November.

    - A declining slope formed by bottoms of mid-Nov and mid-Dec.

2. Short Position should be much conservative as SPY is upward bias. So, the downside target is almost 200 points which is hard to reach.

Happy New Year!! First entry in 2025!

1. Possible Head and Shoulder Top.

2. Profit target >200 points is huge range and may not be possible to meet.

3. There is a nearest downside resistance around 5800 which is extended from the double dips at the starts of 3rd Oct & 4th Nov.

4. The breakout bar with higher volume than the usual.