Can SPX break free from its downtrend?

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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• SPX has continued in its downtrend, respecting its main downtrend line.
• SPX did manage to find support around the $0.45 level, as we expected it might. Price has bounced and struggled to reclaim above its prior high.
• We expect $0.40 to $0.49 will continue to act as a support zone for price. If this zone is lost, we'd expect a more substantial downside as traders capitulate on their positions. However, we're expecting it to hold.
• To the upside, $0.65 is the key level to reclaim, although it is currently a long way off.
• We also note that volumes are generally downtrending, which isn't usually a positive sign.

• Next Support: $0.40
• Next Resistance: $0.65
• Direction: Neutral
• Upside Target: $0.65
• Downside Target: $0.40

Cryptonary's take

It's important that SPX begins to hammer out a base at this lower level and make a more meaningful breakout. For those holding Spot positions, this isn't an attractive area to consider sales. SPX needs to show some strength and begin a major breakout of the downtrend line.

A crossing above $0.65 would be that. In the short term, we're expecting more chop, where we're looking for SPX to hammer out that base and, therefore, provide it with a floor to break out from and push on to $0.65.