Positive sentiment before the opening of the Asia stock markets - SP500 with the possibility of Long

Minutes before the opening of the stock exchanges in Asia, the prevailing moods are positive. Index futures indicate that they will open up in the upward direction on the first day of the week. A good opportunity to trade during the Asian session gives us SP500, which reached a key level on Friday and formed a strong bullish Price Action Action.

The price has reached a key support zone, formed by horizontal, basic diagonal support, 200SMA and 38.2% Fibonacci adjustment of the last upward wave. After reaching the support zone, the price reverses strongly upward, forming a bullish pin bar. The strong impulse upward shows the determination of the bulls from the current levels. Dem (8) also signals a purchase from a surplus sales area, reaching the level reached last on August 24, 2015.

Given the strong foundation behind a large number of companies in the index and good global economic performance, levels are suitable for long positions with a short stop.

SL: 2500

Alternative Scenario: If the price goes below 200 periods combined with horizontal support and stays in several consecutive bars there, the positive scenario will be spoiled and the likelihood of a subsequent collapse will increase.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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