The S&P 500 has been trading in a falling parallel channel since December 2021. It is now trading at the top end of the channel, on past three occasions it has corrected for weeks once reaching the top end of the channel. But on this occasion the MACD & RSI both are showing positive divergence on the bottoms formed in the months of June and October.
Consider a long position on S&P 500 at or below the price of 4100, with a stoploss of 3900
The target for this trade is the length of the channel which is 4800
Time frame for this trade is 4-6 weeks
Consider a long position on S&P 500 at or below the price of 4100, with a stoploss of 3900
The target for this trade is the length of the channel which is 4800
Time frame for this trade is 4-6 weeks
Trade active:
Long initiated at 4071
Trade closed: stop reached