I’ve been writing lately about strong resistance for euro and Sp500, but it looks like bulls are still trying to make more money. Things look interesting on both eurusd and SP500 (and other instruments too). Let’s look first at SP500. On daily chart we can see that the major resistance comes here from 38.2% retracement level, which eurusd tries to force once again.
Yesterday it looked like eurusd can break through support at 1.302 and head lower. In the end support hold again and bulls started buying strong. Notice that support was also 61.8% retracement line.
I was waiting and watching for a resistance line (marked red at chart). It was little tricky setup. I waited until price broke through that resistance to enter the long position. As you can see from price action, it looks like many others traders were also waiting for that confirmation.
I keep my stop loss close. It is tough situation. From one side there is a resistance at daily chart from 38.2% retracement line. On the other side we have quite good setup from today. My position is not so big, so I am going to keep it open and we will see how things will turn around.
On SP500 bulls continue move to north. Form last swings and retracements levels we had two nice convergence levels. The first one hold and from here investors returned to buying. It is interesting that right now they are forcing an important resistance level and it looks like there is a strong chance that bulls may want to attack high around 1370 points!
There are some major resistance levels for SP500, I write about them tomorrow. For now bulls are in charge and situation looks good. Eventually break above 1370 points resistance may lead for longer raise in stock prices. But that is only one possibility. Let’s wait and see.
It is worth noticing that in such environment, where trend is strong, Fibonacci trading works very well and you can use it with good winning ratio.