Hi Traders! Today I share with you my SP500 technical analysis and short term forecast post, we do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!
SP500 H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Stochastic Oscillator, Two Key Resistance Zones
On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening and also based on the Stochastic Oscillator
we could see that the price has reached it’s extreme which we may consider as another evidence of bearish pressure. In addition to this, currently there are no signs opposing this short term bearish view. Also while measuring the first wave of this correction, we have two key resistance zones that has formed. The first key resistance zone is formed by the 61.8% (4482.35) – 100% (4505.95) Fibonacci expansion
level of the first wave. The second key resistance zone is formed by the 161.8% (4544.13) Fibonacci expansion level of the first wave. Until these two key resistance zones (marked in red) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further.
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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