Trade of The Day – US500

Facts:

• Price bounced off the lower limit of the 1:1 structure
• US500 is trading in a short-term upward trend

Recommendation: 

Trade: Long US500 at market price

Target: 5700, 5720

Stop Loss: 5633

Opinion: US stock index (US500) launched a new week with an upward move. Looking at the M15 interval, the bullish pin bar pattern appeared on the chart. In addition the price bounced off the key support at 5652 pts which is a result of the previous price reactions and the lower limit of the 1:1 structure. According to the Overbalance methodology, as long as the price sits above it, an upward move looks to be the base case scenario. We recommend going long US500 at market price with two targets: 5700 and 5720. We also recommend placing stop loss at 5633.Source: xStation5