SP500 – SELL – 21st May 2020

SP500 – SELL – 21st May 2020 (Closed)

Good afternoon guys,

Markets are looking fairly stretched. We may have entered a day too early on the USD positions. Going to be using slightly wider stops so reduce your leverage and calculate risk correctly.

I am now looking to go short on the SP500. Check out the analysis below:

Previously I highlighted a 5 wave structure higher, however where I had the 5th wave initially may have been the 3rd wave. We may have now seen the complete 5 wave structure suggesting there may be a pull back today.

SP500 4 Hour Charts

5 Wave structure higher finishing with a bearish divergence on the RSI. 

SP500 2 Hour Charts

There has been a break of the trend line followed by a retest of the trend line.

Trade Setup: SELL Market Execution, current price 2952, stop loss 3020 and take profit left to run but targeting 2860 -2820.

Stop loss: 68 pips

Take Profit: 92-132

 

Trade Setup
SELL - Market Execution

Entry
2952

Take Profit
2860-2820

Stop Loss
3020