31 May 2013
Flash: S&P 500 looks technically bullish next week and ranging – Nomura
FXstreet.com (Barcelona) - Nomura strategist Saeed Amen has taken a look at the S&P500 from a purely technical perspective an believes that the pair looks bullish ahead.
Looking at a daily chart he note that spot is a touch higher on the week. He sees that spot was unable to break through the 20D SMA on the downside, suggesting losses are limited here. Further, he adds that the RSI has come off, indicating a short-term high has been reached. However, it still is elevated indicating that momentum is on the upside. He writes, “Bandwidth has fallen suggesting range-bound price action. Our target is 1675 (below upper Bollinger band).”
Looking at a daily chart he note that spot is a touch higher on the week. He sees that spot was unable to break through the 20D SMA on the downside, suggesting losses are limited here. Further, he adds that the RSI has come off, indicating a short-term high has been reached. However, it still is elevated indicating that momentum is on the upside. He writes, “Bandwidth has fallen suggesting range-bound price action. Our target is 1675 (below upper Bollinger band).”