Type:
Bullish Bounce
Key Levels:
Resistance: 3948.5
Pivot: 3862.00
Support: 3746.50
Preferred Case:
On the H4, with price moving in an ascending trendline on the RSI , we have a bullish bias that price will rise from the pivot at 3829.25 in line with the pullback support and 50% fibonacci retracement to the 1st resistance at 3950.5 at the swing high in line with the 61.8% fibonacci projection and 50% fibonacci retracement
Alternative Scenario:
Alternatively, price may break the support structure at the pivot and drop to the 1st support at 3745.25 at the pullback swing low in line with the 78.6% fibonacci projection .
Fundamentals:
US indexes moved moderately higher with better-than-expected US economic reports. Hence, we have a bullish view on the S&P500 index
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.