Trade Idea: SPI

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

Australia
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.

 

Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.