30.08.201916:13 Forex Analysis & Reviews: Trading idea on the S&P 500

Good evening, dear traders! I present to your attention a technical trading idea on the S&P 500 index. All summer, I recommended that my clients shorten this index at the level of 3000, and this brought excellent profit.

To date, a formation is being formed that is regularly repeated in currencies and gold. This is a fairly clear horizontal channel, limited by quotes of 2820 and 2944. The range, of course, is huge, but the main thing is that its walls are not yet pierced by false breakdowns either from above or from below. This means that we can count on the very good potential in short positions.

Yesterday, the index came close to the upper limit of the trading – the level of 2944. I suggest that in the event of a false breakdown at the opening, play in the fall with two goals. Goal 1 – for scalpers – work out a return to the broken resistance level of 2944 and take profit. Goal 2 – for medium-term ones – in the case of a false breakdown, hold short positions to the lower limit of the trading to break the quotation of 2820. All levels and both ideas are marked on the chart above.

Congratulations to everyone at the end of the trading week. In my opinion, it was quite successful if you followed my trading recommendations. Good luck with trading and have a good weekend!