Respecting the bearish channel in SPX - SHORTS THROUGH 2685
Updated
Trade set up: Our bias leans towards a short in the SPX, where we are looking for a break below the recent low of 2685 to enter the position. Upon this development, we would set a stop loss at 2725 and our take profit set at 2603. This profit target is subject to change and dependent on the price action, as a break of 2603 would hold huge bearish implications. We will update this idea as it plays out.
Why we like it: Technically the trade is pointing to a solid short opportunity – with the stochastic momentum heading lower, and short-term price analysis showing a series of lower lows and highs. The 5-day EMA has acted as dynamic resistance and contained the rallies of late. We also note the recent 8% relief rally reversed off the 61.8% Fib level.
Our view is to wait for a break of the 30 October high of 2685, as this would throw a probability of an extension of the bearish channel and suggest a move into the neckline of the recent double top at 2603.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Why we like it: Technically the trade is pointing to a solid short opportunity – with the stochastic momentum heading lower, and short-term price analysis showing a series of lower lows and highs. The 5-day EMA has acted as dynamic resistance and contained the rallies of late. We also note the recent 8% relief rally reversed off the 61.8% Fib level.
Our view is to wait for a break of the 30 October high of 2685, as this would throw a probability of an extension of the bearish channel and suggest a move into the neckline of the recent double top at 2603.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Trade active
Trade was activated, however, price rejected this level.Trade closed: stop reached
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