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- Upside appears more compelling amid a potential bull flag.
- A test of 3250 likely as buyers cheer vaccine hopes.
- 3191 is the level to beat for the bears in the near-term.
Having faced rejection below Monday’s high in Asia, S&P 500 futures, the risk barometer, holds sizeable gains to battle 3200 levels amid broad market optimism, courtesy of Moderna’s coronavirus vaccine progress.
The price has entered a phase of consolidation since then, which has now taken the form of a bullish flag on the hourly chart. This is a bullish continuation pattern and an hourly close above the falling trendline resistance at 3210 will confirm the formation.
The bulls will likely target Monday’s high at 3226 en route the psychological level of 3250 in the near-term.
Alternatively, the immediate downside will be limited by the falling trendline support at 3197, below which the bullish 21-hourly Simple Moving Average (HMA), now placed at 3,191, will test the bears’ commitment.
The next support awaits at the 50-HMA of 3180, which could offer some temporary respite to the bulls.
All in all, the path of least resistance appears to the upside, with bullish hourly Relative Strength Index (RSI) at 58.81.
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