Good afternoon Forex Kings,
The World Health Organisation has called an emergency meeting to discus the Corona-virus threat level as reported cases sores towards 8000 with a number of cases testing positive without any symptoms. The WHO has voiced grave concern and has called an emergency meeting of the committee to decide whether this is now a global emergency.
Global indices has erased all of yesterdays gains and are currently testing KEY structures!
SP500 Technical analysis
On the daily time frame you can see the SP500 is currently trading between an inclining channel. These structures are always broken at some point due to a catalyst. The Corona-virus could be the catalyst this year as the SP500 is now re-testing the same trend line.
SP500 4 Hour Candles
The SP500 is currently also being held up by the 200 day moving average on the 4 hour charts. A break below the 200 day moving average could open the doors to the 100 day moving average on the daily time frame which can be found at 3100.
We are planning on having a sell stop below the market price and trend line waiting for a break lower.
Trade Set Up: SELL STOP (SPX) – Entry Price 3230, stop loss back inside the trend at 3275 and take profit 3100.
Stop Loss: 45
Take Profit: 130
Please be aware 1 contract on the SP500 is worth $25 USD. 1 contract is the smallest trade size you can do on the SP500.
1 contract is roughly $1674 AUD risk.
1 contract is roughly $4779 reward.