SP500 Technical Analysis: Fibonacci Fan Readings
As I have tried to explain in the premium channel, the best to find the extreme levels to buy/sell an instrument is to use Fibonacci Fan calculations.
Apart from the default Fibo Fan levels, I like to use my own parameters.
Murrey Math calculations can be the best tool to find the perfect levels for reversals.
S&P 500 index has reversed from Fibonacci 0.50 Speed Fan, which was confirmed by the Murrey Math line on H1 Chart.
The index broke the Fibo 0.618 Fan at 3030 and retested the Fibo Fan.
The index is likely to test Fibo 78.6 Fan somewhere between 2821 – 2780.
But we have some levels – horizontal lines- to focus on.
On the upside, the key resistance is 3100.
Seling pressure will be on the index as long as it holds below the resistance.
On the downside, we need to see the price breaks 2970 support. Breakdown of 2970 will carry the price 2930 and 2890.
A potential retest of the resistance at 3100 can be used as a selling opportunity with a tight stop loss.
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