Potential Breakout in SPX Towards 4800
Trend Analysis
The main view of this trade idea is on the 4-Hour Chart. The S&P 500 Index is now 9.6% higher off the 4300 lows in early October 2021. Currently the index is in a rangebound movement between the 4630 and 4718 price levels. Expectations are for the index to breakout. Given the width of the rangebound movement, the S&P Index should rally towards 4800. Failure of this move will be observed if SPX falls below 4650.
On the Daily Chart the move in the SPX continues to be constructive, with some support observed around the 4650 price level.
Technical Indicators
Based on several technical indicators, the S&P 500 Index is trending higher. The SPX is currently above its short (50-MA), medium (100-MA) and long term fractal moving averages (MAs). These MAs also have had positive crossovers after the SPX found support around 4300 and began rallying. The RSI is also trading above 50 and the KST is in a positive zone, indicating bullish sentiment.
Recommendation
The recommendation will be to go long at market, with a stop loss at 4650 and a target of 4800. This produces a risk/reward ratio of 1.37.
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 of publishing I have exposure to the SPX.
The main view of this trade idea is on the 4-Hour Chart. The S&P 500 Index is now 9.6% higher off the 4300 lows in early October 2021. Currently the index is in a rangebound movement between the 4630 and 4718 price levels. Expectations are for the index to breakout. Given the width of the rangebound movement, the S&P Index should rally towards 4800. Failure of this move will be observed if SPX falls below 4650.
On the Daily Chart the move in the SPX continues to be constructive, with some support observed around the 4650 price level.
Technical Indicators
Based on several technical indicators, the S&P 500 Index is trending higher. The SPX is currently above its short (50-MA), medium (100-MA) and long term fractal moving averages (MAs). These MAs also have had positive crossovers after the SPX found support around 4300 and began rallying. The RSI is also trading above 50 and the KST is in a positive zone, indicating bullish sentiment.
Recommendation
The recommendation will be to go long at market, with a stop loss at 4650 and a target of 4800. This produces a risk/reward ratio of 1.37.
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 of publishing I have exposure to the SPX.
Trade closed: stop reached
Disclaimer
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