2016-09-21 15:32:51

Review and dynamics
For the fourth consecutive day the index S&P500 has traded near the short-term balance line and ЕМА200 on the hourly chart, which crosses the level of 2145.0. The upper line of the descending channel and ЕМА50 on 4-hour chart is also crossing the level of 2145.0. On the daily chart a new downward channel has been formed with the lower border near support level of 2093.0 (ЕМА200 on the daily chart).

Today, world stock indices have grown after the decision by the Bank of Japan not to change monetary policy. However, many investors do not believe that the rise in the global stock markets will continue.

Our opinion
On the weekly chart the indicators OsMA and Stochastic give signals to sell, while on the 4-hour and daily charts the indicators are reversing toward the long positions, indicating possibility of further growth. In case of breakout of the resistance level of 2156.0 (ЕМА200, ЕМА144 on 4-hour chart) the price may continue to rise up to the resistance level of 2170.0 (upper limit of the descending channel on the daily chart).

Meanwhile the index S&P500 is above the levels 2093.0 and 2102.0 (Fibonacci 23.6% to the rise since February 2016 and the level of 1828.0) and the rise can continue.

As an alternative scenario the price can go down to support levels of 2102.0 and 2093.0.

The critical level of the bullish trend will be support levels of 2050.0 (Fibonacci 38.2%) and 2030.0 (ЕМА200 on the weekly chart). If case of breakdown of the support level of 2007.0 (Fibonacci 50.0%), bullish trend is likely to terminate.

If the price continues to rise, bullish trend will dominate in the ascending channel with the upper limit at the level of 2270.0. The nearest resistance levels are 2156.0, 2170.0 and 2192.0 (highs of August). Now, investors are waiting for the rate decision by the Fed, which will be published at 21:00 (GMT+3). Volatility in the financial markets is expected to rise sharply.

Support levels: 2102.0, 2093.0, 2050.0, 2030.0 and 2007.0.
Resistance levels: 2145.0, 2156.0, 2170.0 and 2192.0.

Trading tips
Sell Stop: 2132.0. Stop-Loss: 2146.0. Targets: 2102.0, 2093.0, 2050.0, 2030.0 and 2007.0.
Buy Stop: 2153.0. Stop-Loss: 2143.0. Targets: 2156.0, 2170.0, 2192.0 and 2200.0.

In the descending channel
In the descending channel

The rise in price is possible after breakout of the level of 2156.0
The rise in price is possible after breakout of the level of 2156.0