Trade Idea: SPI

SPI Futures could be worth a look at from the short side on a bounce in the coming days.

Source: Bloomberg

I feel a small position into the 38.2% retracement at 5574 and another into trend resistance around 5610 looks compelling. This move will be aligned with the 14-day RSI moving into the 50 area where the index has peaked a few time of late.

Stops could be placed at 5675 – just above the 61.8% retracement of the May to June sell-off to protect against a stronger move higher.

I am not always a fan of profit targets but 5400 would be a good risk/reward trade.


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