S&P 500 Price:  Formation of Double Bottom Chart Pattern, Bullish Reversal Envisaged

S&P 500 Price Analysis – July 05

In case the bulls’ pressure could not break up resistance level of $3832, price may face support levels at $3740, $3649 and $3573. S&P 500 may penetrate resistance level at $3832 upside, and further increase to the previous high at $3927 and $4019.

Key levels:

Resistance levels: $3832, $3927, $4019

Support levels: $3740, $3649, $3573

 

S&P 500 Long-term trend: Bearish

S&P 500 is bearish on the daily chart. The price found support at $3649 level on June 16. The sellers’ pressure failed. It bounced up from the support level and increased towards the resistance level of $3927 after broken up side$3649 and $3740. Bears defend the resistance level just mentioned with the formation of bearish engulfing candle. The price decline towards previous low to form double bottom chart pattern.

S&P 500 is trading below the 9 periods EMA and the 21 periods EMA which connote an increase in the sellers’ momentum. The relative strength index period 14 is at 44 levels with the signal lines pointing up to indicate buy signal. In case the bulls’ pressure could not break up resistance level of $3832, price may face support levels at $3740, $3649 and $3573.

S&P 500 Medium-term Trend: Bullish

On the 4-hour chart outlook, S&P 500 is on the bearish movement.  The support level of $3649 was tested and it holds the price. The price could not break down the mentioned support levels. Price bounced towards $3927 level after it breaks up $3740 and $3832 levels. S&P 500 may penetrate resistance level at $3832 upside, and further increase to the previous high at $3927 and $4019.

The price is trading above the 9 periods EMA and 21 periods EMA as an indication of bullish movement. The relative strength index period 14 is at 48 levels displaying bullish signal.

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