Chart Of The Day: Stock Market- SP500 Long Idea

The price of SP500 is forming a strong reversal pattern that could see price rally back to the all time highs.

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SP500 Analysis

The SP500 price could rally back to the all time highs as the stock market forms a key reversal bullish pattern. Recently the price of the stock market has fallen which typically happens before the Federal Reserve begins a hiking cycle. Now we are in the hiking cycle as inflation rises we are likely to see the price rise. History tells us that when the Federal Reserve plans to hike rates the price rallies. 

The weekly chart shows the price forming a bullish head and shoulders pattern with the price currently testing and potentially forming the right shoulder of the pattern. If this occurs we could look for long ideas from this area back to the highs. The 4hr time frame shows the price in a consolidation zone but if the price breaks the highs we would likely see a continued move as it invites more buyers and sellers will get out of their positions. A break and retest of the current consolidation zone would be ideal for looking for long opportunities.

Do you trade Gold? you can see our previous analysis on the commodity here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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