Trade idea: Wall Street hourly

Nice set-up on Wall Street hourly.

Wall Street
Source: Bloomberg

Moves into 16,700 could be the level to sell into. As you can see throughout August and September, we have seen this level cap rallies. It's also the 61.8% retracement of the August sell-off.

Momentum indicators are elevated and into 16,700, suggesting the upside could be capped – although the shorts would want to see a move back below the 80 level on stochastics.

From a risk/reward perspective, I feel a move back into 16,400 could be on the cards and the strong horizontal resistence gives a solid guide for stops.

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