S&P 500 forms bullish price reversal ahead of NVIDIA results
Traders are reminded that US Indices can now be traded in rands from a local account
Traders are reminded that US Indices can now be traded in rands from a local account
Traders will also want to watch out for NVIDIA (a major US Tech and S&P component) results out this evening
A preview of the NVIDIA results can be found here
US 500 (S&P500)
Marked with the red arrow we see that the 5850 level has held up with a bullish hammer candlestick pattern suggesting a reversal off this level. The previous all-time high at 6020 becomes the initial resistance target from the move. A close above this level would suggest overhead trend line resistance at 6200 to be a further target from the move.
Should the price instead move to close below the 5850 level, the bullish reversal would be deemed to have failed.
US 500 (S&P500) - previous
The US 500 is currently testing support at the 5850 level. Traders will be looking to see how the price handles this level.
A close below would suggest a deeper correction with 5665 the next support target considered.
Should the level instead hold, and we can see strong close higher, a bullish price reversal at support would be considered.
The long term trend for the US 500 remains up, this suggests that trend followers would still be looking to keep a long bias to trades on the index in either scenario.
In the deeper correction scenario, traders might prefer to wait for weakness to play out, looking for a bullish reversal at one of the lower labelled support levels for long entry.
In the bullish reversal off the 5850 support level scenario, traders might look for long entry targeting the recent high and overhead resistance at around 6200, while using a close below the reversal low as a stop loss consideration.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Take a position on indices
Deal on the world’s major stock indices today.
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
