Published On: Thu, Apr 27th, 2017

S&P500: Fibonacci analysis


On the H4 chart the price dropped from maximum April levels (2395.8) and is moving towards the level of 2378.8 (correction 23.6%) to the area of crossing with the 23.6% curve and the 38.2% upward fan line. According to Stochastic (that is reversing in the oversold zone), there may be not enogh potential for reaching 2378.8, and the quotes may return to April maximums. If the level of 2378.8 is broken through, the next fall targets will be 2368.4 (correction 38.2%) and 2359.8 (correction 50.0%).

On D1 chart the index is trading in the area of April maximums and, according to Stochastic, may begin correction to the levels of 2357.0 (middle line of Bollinger Bands) and 2318.0 (correction 23.6%). In case the price consolidates above 2390.7 which is likely, it may continue growing to 2430.0. 

Trading tips

Sell positions may be opened below 2378.8 with targets at 2357.0, 2318.0 and stop-loss at 2385.0.

Alternative scenario

Buy positions may be opened if the price consolidates above 2390.7 with target at 2430.0 and stop-loss at 2375.0.

Forex Analysis

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