Facts:
- The US500 is extending its dynamic declines and is currently trading near the lows of November 2024 and January 2025.
- The Nasdaq is trading below the 200-day EMA today, which, given the previous demand reactions to this zone, may limit the declines in the technology sector and thus support the US500.
- Despite conflicting political information, it seems that Donald Trump maintains his will to support American Big Tech, which is why these companies may return to favor with investors in the medium term.
Recommendation:
Long position on the US500 at the market price
- TP2: 6150
- TP1: 5950
- SL: 5720
Opinion:
The US500 is extending its dynamic declines and is currently trading near the lows of November 2024 and January 2025. The technological Nasdaq is currently trading below the 200-day EMA, which, given the earlier demand reactions to this zone, may limit declines in the technology sector and thus support the US500. Despite conflicting political information, it seems that Donald Trump maintains his will to support American Big Tech, which is why in the medium term these companies may return to the favor of investors, and the current movements may be erased.
However, we recommend that investors remain particularly cautious with the asset, given the high volatility characteristic of the instrument. We recommend taking into account the take profit and stop loss levels for this transaction (they are based on the zone of the last lows of the zone from November 2024 and January 2025 and the 200-day EMA (stop loss) and the area of local January highs (take profit, zone 6150 points; II take profit on the 100-day EMA, purple line on the chart)).
Methodology and assumptions:
The recommendation was based on technical analysis of the chart and price action of the US500. The target level and stop loss order were placed in the zone of previous price reactions of support and resistance. You can read more about this methodology here:
Source: xStation 5
