SP500: Buyers to expect a bullish breakout

EagleFX Team EagleFX

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.

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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