On the S&P 500 and NASDAQ100 indices, closing as a high test bar in the resistance zone, and a bearish engulfing bar on the FTSE100 (UK100) stock index, a sell setup is in order suggesting potential bearish continuation on these three (CFD) indices, following the recent sell off on major indices.
1. S&P 500
The rejection/resistance zone on the S&P 500 comprises the following:
- retest of the 50 ema;
- retest of ~2011; and
- 50% retracement, and close below.
Oscillator convergence, as shown on the chart, is seen as an additional argument to enter a potential continuation of seller based momentum in this index.
entry - below high test bar
stop loss - above high bar
target - previous low or lower
2. NAS100
Since the major global indices demonstrate price behaviour correlation, an almost exact set up as on the S&P 500 is also forming on the NAS100.
entry - below high test bar
stop loss - above high test bar
target - previous low or lower
3. UK100
The FTSE100 is in a very clear down trending environment. Three key reasons of a potential continued price decline are:
- close as a bearish engulfing bar;
- a strong bout of resistance at ~6250; and
- rejection of the 20 ema.
entry - below low of bearish enguling bar
stop loss - above high of bearish engulfing bar
target - at previous low or lower
1. S&P 500
The rejection/resistance zone on the S&P 500 comprises the following:
- retest of the 50 ema;
- retest of ~2011; and
- 50% retracement, and close below.
Oscillator convergence, as shown on the chart, is seen as an additional argument to enter a potential continuation of seller based momentum in this index.
entry - below high test bar
stop loss - above high bar
target - previous low or lower
2. NAS100
Since the major global indices demonstrate price behaviour correlation, an almost exact set up as on the S&P 500 is also forming on the NAS100.
entry - below high test bar
stop loss - above high test bar
target - previous low or lower
3. UK100
The FTSE100 is in a very clear down trending environment. Three key reasons of a potential continued price decline are:
- close as a bearish engulfing bar;
- a strong bout of resistance at ~6250; and
- rejection of the 20 ema.
entry - below low of bearish enguling bar
stop loss - above high of bearish engulfing bar
target - at previous low or lower
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.