Charting, page-2426

Your short time trend is a bit off, so we are not out of the woods yet.

In trend analysis, a trend is only considered broken when the SP closes above it for two consecutive weeks (explained further in the paragraph following the chart below). We're likely to achieve the first part of that milestone today, marking week one, but we must wait and observe if we can maintain it into the next week.

In the graph below, since Point 1 isn't lower than Point 2, it's not possible to adjust the short-term (blue) trend line to align with the high of Point 3.

If the S&P continues its upward trajectory, we might indeed break the longer-term (purple) downtrend at around 0.8c, provided we close above it for two consecutive weeks.



Why two consecutive weeks?
Waiting for the share price to close above the trend line for two consecutive weeks is a common practice in trend analysis to reduce the impact of temporary fluctuations and confirm a genuine trend reversal. This approach helps filter out short-term noise and provides a more reliable signal, ensuring that the change in trend is not just a brief anomaly but a sustained shift in the market's sentiment or direction. By requiring two consecutive weekly closes above the trend line, analysts seek to minimize the possibility of false signals and increase the confidence in identifying a meaningful trend change.