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S&P 500 technical analysis: starting to appear bullish

By Nathan Batchelor

20:20, 5 October 2020

S&P 500 technical analysis

The S&P 500 climbed towards the $3,395 level last week, marking a recovery of nearly 6 per cent from its September low.

S&P 500 analysis shows that traders are starting to buy into the index on any meaningful price pullbacks.

Current technical analysis of the S&P 500 shows that a large bullish pattern will form if the price moves towards $3,425.

S&P 500 medium-term price trend

The S&P 500 appears increasingly bullish, as the index starts to consolidate around its key 50-day moving average.

S&P 500 technical analysis shows that a large bullish reversal will form if the price reaches the $3,425 resistance area.

S&P 500 technical analysis

Technical analysis highlights that the index could rally towards the $3,620 area if bulls can break through the $3,425 level.

Multiple daily price closures above the index’s 50-day moving average, around the $3,360 level, is likely to provoke a test of the $3,425 area.

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Spread 1.8


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Oil - Crude

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Short position overnight fee -0.0066%
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Spread 0.03

S&P 500 short-term price trend

S&P 500 technical analysis shows that the index only has a bearish bias over the short term while the price trades below $3,310.

The one-hour time frame highlights that a small head-and-shoulders pattern has formed, following the recent rejection from the $3,395 level.

S&P 500 technical analysis

Falling wedge patterns are considered to be powerful reversal patterns. Technical analysis highlights the $3,395 and $4,425 level as short-term upside target.

According to technical analysis, a breach of the $3,325 level is required to activate the bearish pattern, which holds a $50 downside target.

If price moves above $3,395, then a rally towards $3,445 should be expected in the short term.

S&P 500 technical summary

S&P 500 analysis shows that the index is appearing increasingly bullish. Further upside is expected if bulls can gain traction above the $3,395 level.

Markets in this article

US 500
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-4.5 -0.100%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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