Technicals | Oct 25 2019
Bottom Line 24/10/19
Daily Trend: Up
Weekly Trend: Up
Monthly Trend: Up
Support Levels: 2822 / 2728 / 2650 – 2600
Resistance Levels: 3028 (all time highs)
Technical Discussion
Reasons to stay longer term bullish (caution still warranted shorter term):
? S&P 500 earnings have overall been well supported
? Elliott Wave count continues to have motive bigger picture
? retracements have been healthy and well supported to this point
? Higher degree Wave-[4] has locked in a major low back in December 2018
Even though wave-(ii)'s normally unfold as zig zags, there is no issue with them evolving as sideways or triangle patterns either. Throughout the rise off the 2009 lows, there has been plenty of instances where this has happened. As part of the numerous subdivisions that have taken place. Price structures overall have remained bullish and well supported on the dips.
The ascending triangle on our chart is the immediate point of focus, and is maintaining symmetry. Price is rotating in robust fashion between the upper and lower boundaries of the pattern. The 200 day moving average is sustaining price above it. The Elliott Wave count continues to prove within its core rulings. Daily trading is consolidating in and around resistance and the all time highs. These are all bullish price attributes.
Our focus now is on the official breakout point circa 3029. The ideal scenario post breakout will then be price reverting from corrective to impulsive. Levels are overbought yet there is no negative divergence. We continue to like what we see here.
Trading Strategy
The all time highs are again close to hand yet with price well overbought. Patterns and overall price structures are compelling. As such we are offering up another trading opportunity on the long side for the S&P 500. So the recommendation is to buy at 3029 with initial stops at 2854. Ideally the breakout will prove to be a catalyst for price action to start moving strongly higher again.
Re-published with permission of the publisher. www.thechartist.com.au All copyright remains with the publisher. The above views expressed are not by association FNArena's (see our disclaimer).
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