- June 30, 2020
- Posted by: Analysis Team
- Category: Forex News
The S&P 500 Index is edging lower according to futures, potentially correction a fraction of its tremendous gains in the second quarter. How is the stock index positioned on the technical charts?
The Technical Confluences Indicator is showing that some support awaits the S&P 500 at around 3,040, which is the convergence of two Fibonacci lines – the 23.6% one-week, the 23.6% one-day,
Stronger support awaits at 3,032, which is the meeting point fo the Fibonacci 38.2% one-day and the Simple Moving Average 5-4h.
Looking up, some resistance awaits at 3,059, which is the confluence of the Bollinger Band 15min-Upper and the Fibonacci 38.2% one-week.
Stronger resistance is at 3,071, which is where the previous monthly high and the SMA 5 one-day hit the price.
Here is how it looks on the tool:
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Learn more about Technical Confluence