Commodity
by Seth Parker on November 15, 2018

SP500 Analysis – iH&S in progress

Thursday’s technical part starts with the analysis of the SP500, which was previously mentioned here on the 8th of November, so exactly a week ago. Back in that day, the price was in a short-term bullish mode, after one week of a continuous recovery. This is what we wrote in our previous piece:

„With all this, the current sentiment has to be positive. Before going full buy mode here, remember that at the beginning of the year, it all looked the same and still, price managed to make new lower lows. „

sp500 chart

Well, unfortunately that was it for the buyers. Instead of going any higher, the price stopped on the 61.8% Fibonacci (orange). That will be the closest and the most important resistance right now. Today’s session has a chance to finish on the green side of the market. That can be the bottom of the right shoulder. In this case, orange area is the neckline, which only ads the significance here. We have to mention that the price dropped below the long-term up trendline (green), which can be perceived as a negative factor. To sum up, the sell signal is on. Only hope here comes only from the fact that we can have an iH&S formation. ‘Can have’ is still far from a legitimate signal, so traders should not get too optimistic.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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