SPX500 has produced an Engulfing Bearish candle stick pattern after hitting highs at 3230 on June 09, 2020. It should be noted that the indices has reversed from a convergence of fibonacci 0.786 retracement of earlier drop between 3400 and 2200 and the support turned resistance trend line as seen on the chart. Ideally, prices should now stay below the 3230 handle. Believe it or not, the recent rally is just a correction/counter trend ans should not be constructed as a resumption higher. Furthermore, the current rally has stalled around the fibonacci 0.618 retracement at 3135/40 handle. It should be a matter of time before SPX500 reverses sharply lower again, surprising a lot many traders/investors. Overall, a Wave 3 of (3) might be ready to drop lower, as long as 3230 remains intact.
Strategy:
Short against 3400, targeting below 2200.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against 3400, targeting below 2200.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.