The U.S. Small Cap contract often generates reliable reversal signals, meaning the three-candle evening star pattern completed Friday should be of interest to traders, especially with bullish price momentum also showing signs of rolling over.
Should the price push back towards Monday’s opening level, shorts could be established beneath the level with a stop above for protection. 2192 looms as an initial target, having acted as both support and resistance in the recent past, although the 200-day moving average found at 2176.7 screens as a more appealing target given its importance for longer-term directional moves in the past.
If the price were to close beneath the 200DMA, it may act as a catalyst to spark a deeper unwind towards 2133 or 2075.
Good luck!
DS
Should the price push back towards Monday’s opening level, shorts could be established beneath the level with a stop above for protection. 2192 looms as an initial target, having acted as both support and resistance in the recent past, although the 200-day moving average found at 2176.7 screens as a more appealing target given its importance for longer-term directional moves in the past.
If the price were to close beneath the 200DMA, it may act as a catalyst to spark a deeper unwind towards 2133 or 2075.
Good luck!
DS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.