SPX500 Long - Technical Analysis - Over 12R + EOY Rally chance
I see a convergence of two major patterns forming and lining up with high impact news event tomorrow (Friday 27th).
The conservative option is to place the trade with the stop loss at the red horizontal line.
The most aggressive is to just use the red zone though you run a higher risk of not being filled.
I will be doing a hybrid of the two and entering slightly higher and with the stop loss below the red zone.
The take profit shown is the first area of consideration, however I do believe there is a fair probability that market will continue rallying if this take profit is reached and if so I will be taking the trade to 6000.
There is also bullish divergence on the daily timeframe but it's not an indicator I use, but it is effective - just another signal that there is a good chance of a rally here.
The conservative option is to place the trade with the stop loss at the red horizontal line.
The most aggressive is to just use the red zone though you run a higher risk of not being filled.
I will be doing a hybrid of the two and entering slightly higher and with the stop loss below the red zone.
The take profit shown is the first area of consideration, however I do believe there is a fair probability that market will continue rallying if this take profit is reached and if so I will be taking the trade to 6000.
There is also bullish divergence on the daily timeframe but it's not an indicator I use, but it is effective - just another signal that there is a good chance of a rally here.
Comment:
Price missed entry and so trade is no longer valid.