Chart pattern- Descending Broadening Wedge
Ichimoku analysis (4-Hour chart)
Tenken-Sen- 3962
Kijun-Sen-3949
S&P500 surged yesterday after the fed's monetary policy and hits a fresh year high around 3988. The central bank has upgraded 2021 GDP to 6.5% from 4.2%, core PCE forecast rose to 2.2% in 2021 from 1.8%. While the unemployment rate lowered to 4.5% in 2021 from 5%. The US $1.9 trillion stimulus package and vaccine rollout is also pushing the global markets higher. It hits an intraday low of 3950 and is currently trading around 3961.16.
Technically, the index is holding above 100 and 200-4H MA (3875 and 3860). On the higher side, the near-term significant resistance is around 4000 and any jump above will take the index to 4031/4080 (trend line resistance).
The short-term support is at 3925, any violation below targets 3878/3855/3824. Significant trend continuation only if it breaks 3720.
It is good to buy on dips around 3900 with SL around 3870 for TP of 3985/4000.
