S&P500 is making an inverse head and shoulder formation as we can see in the chart. . The current up move form 1560 to 1618 has formed the right shoulder of the formation. I think we will see a breakdown in index from next week.
Most conservative target for this formation is 1515. This also coincides with long term trend line.
More aggressive target for S&P500 is at 1480 levels. Traders can go short on S&P500 at CMP of 1606 with a stop of 1630 and target of 1515. I would guess the probability of this happening is more than 70%.
No comments:
Post a Comment