Following up from yesterday's post "Get Ready for Range Expansion Play from SPY Intraday Triangle
," we see that we indeed get the range expansion breakout trade as expected by the symmetrical triangle of yesterday.
Not only does it serve as a great example of real-time identification and follow-through of the pattern, but we see a similar though smaller compression triangle forming today at 1:00 EST on the SPY.
Let's see this development and note key breakout trendline levels to watch.
(Click for full-size image hosted by Chart.ly)
[Related -How to Prepare For A Correction Without Missing Out On Upside Potential]
I happened to capture yesterday's triangle minutes before the expected price breakout, and we're winding down to the apex of the current triangle now.
This means traders would be looking to buy a breakout above the $115.50 area or short a breakdown under $115.25 - again another 25 cent compression in trendlines.
I'm using a pure price chart above so you can see how to draw the trendlines and visualize the price compression better.
Be ready for another potential range expansion move from a breakout of this smaller triangle, and note the ‘apex' level just under $115.00 as a possible support target, or the morning high of $116.00 to play a potential upside breakout resistance target.