Let's continue our S&P 500 technical analysis.
The above chart showed that 2 positive signals had developed prior to the S&P rise. The candlestick had closed above the 5-day SMA and the stochastic had a bullish crossover.
If there were at least 2 positive signals, we could execute a trade with a calculated risk.
What's going to happen next?
A candlestick gap has occurred and this will provide a support level for the S&P. As long as the S&P doesn't fall below the gap, the S&P will continue to rise. Once the gap is breached, we will have to draw new resistance and support levels based on recent high volume days.
http://sg-stock.blogspot.com/2020/09/s-500-technical-analysis-part-2.html
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