S&P 500 Index Expected Move Towards 4450
Updated
Trend Analysis
The main view of this trade idea is on the 2-Hour. The S&P 500 e-mini futures (ES1!) appears to have broken out of its symmetrical triangle. This presents a buying opportunity on the futures contract. Expectations are for a short-term rally towards 4450, 0.72% away from the time of publishing. A indication of a failure of this breakout will be a decline towards 4375.
Technical Indicators
To support the potential breakout in ES1!, is the fact that at the time of publishing the instrument is trading above its short (25-SMA), medium (75-SMA) and fractal moving averages. Also there has been a positive crossover on the KST as well as the RSI is above 50 and not yet above the overbought 70 price level.
Recommendation
The recommendation will be to go long at market. Traders can monitor in the short term timeframe and identify a better price point closer to the resistance line (red line in chart) of the symmetrical triangle pattern. ES!1’s target price is around 4450, with an indicative stop loss around 4375.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in ES1!.
The main view of this trade idea is on the 2-Hour. The S&P 500 e-mini futures (ES1!) appears to have broken out of its symmetrical triangle. This presents a buying opportunity on the futures contract. Expectations are for a short-term rally towards 4450, 0.72% away from the time of publishing. A indication of a failure of this breakout will be a decline towards 4375.
Technical Indicators
To support the potential breakout in ES1!, is the fact that at the time of publishing the instrument is trading above its short (25-SMA), medium (75-SMA) and fractal moving averages. Also there has been a positive crossover on the KST as well as the RSI is above 50 and not yet above the overbought 70 price level.
Recommendation
The recommendation will be to go long at market. Traders can monitor in the short term timeframe and identify a better price point closer to the resistance line (red line in chart) of the symmetrical triangle pattern. ES!1’s target price is around 4450, with an indicative stop loss around 4375.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in ES1!.
Trade closed: stop reached
Close: stop reached
Disclaimer
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