SP500: Buyers to expect a bullish breakout
|The U.S. S&P 500 Index, in its 2-hourly chart, shows the progress in a consolidation structure as a wave ((ii)) of Minute degree labeled in black.
The internal sequence of the second wave of the upward cycle that began last March 22nd looks like an incomplete flat pattern. In particular, the flat pattern shows the advancement in the wave (c) of the Minuette degree labeled in blue.
At the same time, we observe that the internal structure of the wave (c) remains in the bearish side while its short-term trendline remains intact. However, the big picture reveals the possibility of a new ascent that may correspond to a wave ((iii)) of Minute degree in black.
A bullish position will activate if the price breaks out the descending trendline and closes above 2,529.3 pts. Our conservative scenario foresees a potential first target at 2,676.3 pts. If the bullishness of traders increases its upward momentum, the S&P 500 could advance to 2,816.7 pts, and even rise until 2,973.6 pts.
The level that invalidates our bullish scenario locates at 2,360.6 pts.
Trading Plan Summary
Entry Level: 2,529.3 pts.
Protective Stop: 2,360.6 pts.
1st Profit Target: 2,676.3 pts.
2nd Profit Target: 2,816.7 pts.
3rd Profit Target: 2,973.6 pts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.