Source: PaxForex Premium Analytics Portal, Technical Insight
Stock America closed lower, the first trading day of 2021, amid worries about the rising number of coronavirus infections in the world. Last Thursday, which was the last day of trading in 2020, the Dow Jones and S&P 500 indicators renewed their record highs.
S&P 500, H4
Pivot: 3700.00
Analysis:
Provided that the index is traded below 3723.00, follow the recommendations below:
- Time frame: H4
- Recommendation: short position
- Entry point: 3700.00
- Take Profit 1: 3663.00
- Take Profit 2: 3636.00
Alternative scenario:
In case of breakout of the level 3723.00, follow the recommendations below:
- Time frame: H4
- Recommendation: long position
- Entry point: 3723.00
- Take Profit 1: 3745.00
- Take Profit 2: 3770.00
Comment:
RSI indicates a downtrend during the day.
Key levels:
| Resistance | Support |
| 3770.00 | 3663.00 |
| 3745.00 | 3636.00 |
| 3723.00 | 3590.00 |
S&P 500, D1
Pivot: 3688.00
Analysis:
While the price is above 3589.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 3688.00
- Take Profit 1: 3900.00
- Take Profit 2: 4070.00
Alternative scenario:
If the level 3589.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 3589.00
- Take Profit 1: 3484.00
- Take Profit 2: 3330.00
Comment:
RSI is bullish and indicates further increase.
Key levels:
| Resistance | Support |
| 4349.00 | 3589.00 |
| 4070.00 | 3484.00 |
| 3900.00 | 3330.00 |
