S&P 500 H4 – Bulls are cautiously testing the market

Written on 01/03/2022 by Theunis Kruger, FX Trainer at FXTM

The S&P 500 on the H4 time frame was in a downtrend until a last lower bottom formed on 24^th February at 4105.9.

After the lower bottom, the bulls made their move. The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator following in tandem by breaking through the baseline into bullish terrain.

A possible critical resistance level formed on 25^th February at 4384.6, and the bears then tried to get back in control. However, a support level at 4261.7 stopped them on 28^th February, and the bulls are currently cautiously testing to see if they can get the upper hand again.

During the 28th February market session, the price just broke the 4384.6 resistance level, and three possible price targets could have been considered from there. The following targets were calculated attaching the Fibonacci tool to the higher top at 4384.6 and dragging it to the bottom of the support level at 4261.7. The first target was estimated at 4460.6 (161.8%). The second price target was considered at 4583.5 (261.8%), and the third and final target can be anticipated at 4782.3 (423.6%).

If the support level at 4261.7 is broken, the above scenario is annulled, and any remaining risk must be carefully managed.

As long as the bulls continue to test the market and demand overcomes supply, the outlook for S&P500 on the H4 time frame will remain bullish.

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Nigel Frith

Share

Tweet

Safest Forex Brokers 2024

	Broker	Info	Best In	Customer Satisfaction Score
#1	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#2	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#3	* 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008	Global CFD Provider	Best Trading App Visit broker	5
#4	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#5	51% of retail CFD accounts lose money Founded: 2007	Global CFD & FX Broker (*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more)	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#6	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#7	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker	5

Forex Fraud Certified Brokers

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.