Unlocking the S&P 500’s trading range for next week: Analyzing the volume profile


The S&P 500 has been trading in a range for the previous 30 days, with the volume profile indicating that buyers were keen to enter at the value area low on Friday. This is a recurring trend, since bulls have previously stepped in when the price reached the value area low, which is approximately at 3,937 on the emini.

Traders and investors may receive vital insight into how the market is holding and how buyers and sellers are engaged by monitoring the volume profile and key price levels, as the following S&P 500 technical analysis video:

With the price remaining above the 20 EMA, now at 3,986.75, and the red line denoting the Point of Control sitting just under the 4,000 round figure at about 3,993, traders might consider two possibilities. To begin, traders might go Long at about 3,993 (there is a risk that their buy orders would not get filled, if price does not get there) and place their stops just below 3,960. Swing traders may then take a partial profit at 4,029, which is a 1.11 return versus risk, and then take the other half at 4,467, which is already a 2.29, or simply go for the top of the range at 4,080, which is already a 2.68 reward vs risk ratio.

Also, potential buy and holders of stocks may want to watch the key price level mentioned within the above technical analysis video as the try to time their upcoming buys on the favorite stocks such as Microsoft or Apple. Do watch: A daily candle that closes below 3,930 indicates a bearish signal.

Overall, the S&P 500 emini futures appears to be somewhat bullish for next week, and traders can visit ForexLive.com for further perspectives and updates, as they trade at their own risk.


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