FxWirePro: S&P500 forms potential Bearish CD pattern, good to sell on rallies
Harmonic pattern – Bearish AB=CD pattern Potential Reversal Zone (PRZ) – 2425. S&P500 is consolidating around 2400 for the past five trading session. The index hits the all-time high of 2418 on 25th May 2017 and is tradi…
S&P500 is consolidating around 2400 for the past five trading session. The index hits the all-time high of 2418 on 25th May 2017 and is trading around narrow range between 2418 and 2402. It is currently trading around 2413.
In the daily chart the index has formed potential Bearish AB=CD pattern and is expected to get completed at 2425.Any break above potential reversal zone will take the S&P500 till 2445 (161.8% retracement of 2407 and 2345).
On the lower side, major support is around 2400 (89- 4H EMA) and any break below will drag the index till 2385 (200 – 4H MA)/2345 (May 18th 2017 low).
It is good to sell on rallies around 2425 with SL around 2445 for the TP of 2385/2345.
