Good afternoon team,
An interesting start of the week, not much has been jumping out to me just yet, however, the recent pull back on the SP500 is appealing.
We are still waiting on the next stimulus package to be announced, and whilst we wait the Senate has agreed to put a partial deal in place to act as a stop-gap and prevent any economic damage. The Presidential debate raised concerns about a smooth transition out of the White House should Trump lose the Presidential campaign. This resulted in a stronger USD as the safe haven play came into effect. US equities dropped during the early Asian session.
The SP500 now looks like a buy opportunity based on a number of technical patterns.
SP500 4 Hour Charts
SP500 has tagged the 61% Fib retracement, the RSI is signalling further upside. There has also been a falling wedge breakout from a key support zone. We are now looking to go long on the index in anticipation of a move higher.
Trade Setup: Buy Market Execution, current price 3308, stop loss 3248 and take profit 3468.
Stop loss: 60 pips
Take profit: 160 pips
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