S&P 500 Index: Eyeing 3,309 as the next bullish upside target– Confluence Detector
The S&P 500 has been extending its gains amid a slew of promising coronavirus vaccine candidates and as American politicians sit down to discuss the next fiscal relief bill. After the recent move, what are the next levels to watch for US shares?
The Technical Confluences Indicator is showing that the S&P 500 Index is facing some resistance at 3,276, which is the convergence of the Simple Moving Average 5-15m, the SMA 5-1h, the Bollinger Band 15min-Middle, the Pivot Point one-day Resistance 2, and the SMA 10-15m.
The upside target is 3,309, which is where the Pivot Point one-day Resistance 3 and the PP one-week R2 meet up.
Support awaits at 3,271, which is the confluence of the Bollinger Band one-day Upper, the BB 4h-Upper, and the previous 4h-low.
The next significant support line is at 3,252, where the previous yearly high, the SMA 5-4h, and the SMA 50-15m converge.
S&P 500 Chart
Here is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
