How to Trade Stock Index now?
In this blog post for how to Trade Stock Index we will analyse the situation for US 500 Cash- S&P500 and Wall Street Cash (Dow Jones 30) both of them are in Over Bought territory.
For how to Trade Stock Index (S&P500) after Corona attack in which S&P500 have managed to recover a humongous 86.8% (not a Fibonacci ratio), we are observing that the stock index US 500 cash (S&P500) after struglling with the Fibonacci ratio of 88.6% is now back down below the Fibonacci ratio of 78.6% (which was at 3,137.64) and is now trading at 3,036.99 price level as shown in the chart. The Fibonacci Retracement is drawn from the swing high of 20-Feb-2020 to the swing low of 23-Mar-2020. Price of S&P500 did went up the 78.6% Fib ratio and immediately snapped back below the important ratio. At N P Financials, we call it a “Crack & Snap Back” phenomenon.
When you are interested to know how to Trade Stock Index now for S&P500 after the “Crack & Snap Back” phenomenon, there are couple of observations as below:
a. S&P500 for the last 2 days is closing above the trend line drawn from the swing low of 02-Apr-2020 to the swing low of 14-May-2020.
b.S&P500 for the last 2 days is closing above the support line drawn from the swing high of 19-May-2020.
For how to Trade Stock Index now, if S&P500 is closing below the price level of 2,980.64 and then its low is taken out then the price objectives for S&P500 Stock Index can be projected as below:
1. 2,965.30
2. 2,920.25
3. 2,861.25
4. 2,827.04
5. 2,765.53
6. 2,704.30
7. 2,661.78
8. 2,607.44
9. 2,581.59
10. 2,557.73
For how to Trade Stock Index (DJI30) after Corona attack in which DJI30 have managed to recover a humongous 83.1% (not a Fibonacci ratio), we are observing that the stock index Wall Street Cash (DJI30) after struglling with the Fibonacci ratio of 78.6% is now back down below the Fibonacci ratio of 78.6% (which was at 27,118.90) and is now trading at 25,555.90 price level as shown in the chart. The Fibonacci Retracement is drawn from the swing high of 12-Feb-2020 to the swing low of 23-Mar-2020. Price of DJI30 did went up the 78.6% Fib ratio and immediately snapped back below the important ratio. At N P Financials, we call it a “Crack & Snap Back” phenomenon.
When you are interested to know how to Trade Stock Index now for DJI30 after the “Crack & Snap Back” phenomenon, there are couple of observations as below:
a. DJI30 for the last 2 days is closing below the trend line drawn from the swing low of 23-Mar-2020 to the swing low of 14-May-2020.
b. DJI30 for the last 2 days is closing above the support line drawn from the swing high of 10-Mar-2020. We can also observe the “Gap” here between 25,217.60 and 25,047 price level which is acting as a support as of now.
For how to Trade Stock Index now, if DJI30 is closing below the price level of 25,047 and then its low is taken out then the price objectives for DJI30 Stock Index can be projected as below:
1. 24,959.60
2. 24,715.60
3. 23,822.60
4. 23,588.80
5. 22,921.60
6. 22,785
7. 22,131.9
8. 21,809.60
9. 21,658.30
10. 20,634
Now the big question: how you can trade S&P500 and DJI30 going forward to repeat our success.
To know the possible answer to this critical question and to take advantage of our proprietary Advance technical analysis so that you can move to the next level in your trading journey and be good at trading the stock market indices, click here.
Our Unique, Proprietary and most accurate Trader Foundation Course has the capability to identify these markets’ price objectives at a regular interval which we share with our Paid Clients.
To Trade Stock Markets Indices in the Professional way and to find out the answers to all your Trading related queries, please contact us at +61 3 9790 6476 and book your FREE discussion session for 30 minutes at Level 3, 2 Brandon Park Drive, Wheelers Hill, Victoria 3150.
Written by
Partha
Partha Banerjee is the Founder, Principal Trader, and Director of N P Financials Pty Ltd, one of Australia’s most respected ASIC-regulated proprietary trading and trader-training firms and an AFSL holder. With decades of experience across multiple market cycles, Partha is known for his disciplined, structure-first trading approach, grounded in transparency, risk management, and real-market execution.
He actively trades the same strategies he teaches, specialising across Forex, Equities, Commodities, Indices, Cryptocurrencies, and intraday markets. Under his leadership, N P Financials has become a globally recognised trading education and proprietary trading organisation, earning multiple national and international awards for regulatory excellence, educational depth, and long-term trader outcomes.
Connect with Us:
info@npfinancials.com.au
+61 3 9790 6476
