We see an opportunity to get long on the S&P 500 daily.
Right now, price is around a weekly support/congestion level around 1825 that has formed a double bottom. This area shows to have acted as both support and resistance in the recent past, seen clearer in line charts based off the closing prices. My oscillator is showing bullish divergence on that double bottom.
We will use a 2618 strategy to become involved.
For a conservative entry opportunity, we will look for price to break the "V" or neckline of the double bottom and retrace into a .618. The illustration as to when the actual retrace will occur is simply for demonstrating a potential trade in action. Two contracts will be taken at that time, with the first target at the swing high and the 2nd at the 1.27 extension of the bullish move. If/when target 1 is hit, stops will roll to break even on our second contract. Stops go below the right leg of the double bottom. If price simply continues lower and doesn't break the neckline, well, we simply don't have a trade.
Right now, price is around a weekly support/congestion level around 1825 that has formed a double bottom. This area shows to have acted as both support and resistance in the recent past, seen clearer in line charts based off the closing prices. My oscillator is showing bullish divergence on that double bottom.
We will use a 2618 strategy to become involved.
For a conservative entry opportunity, we will look for price to break the "V" or neckline of the double bottom and retrace into a .618. The illustration as to when the actual retrace will occur is simply for demonstrating a potential trade in action. Two contracts will be taken at that time, with the first target at the swing high and the 2nd at the 1.27 extension of the bullish move. If/when target 1 is hit, stops will roll to break even on our second contract. Stops go below the right leg of the double bottom. If price simply continues lower and doesn't break the neckline, well, we simply don't have a trade.