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 CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

USA500

Market Opportunities - 08/04/2021

08 April, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. 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.

USA500 weekly uptrend opportunity based On 1.00 Lot Calculation:

  • The USA500 is an index of 500 large-cap stocks that is a benchmark to thousands of portfolio managers around the world. The 500 companies represent 80% of the publicly traded stocks by market value. The index is capitalization weighted. Price moves in larger companies have a greater impact on the index than price moves in smaller companies.
  • EVENT: US Q1 EARNINGS SEASON TO START ON APRIL 12. The United States is coming into 1st Quarter earnings season for most of its listed stocks. Many companies in the USA500 will be reporting earnings in the next 60 days. Some of the largest will report before the end of April. For the reasons mentioned below many firms may report stronger than forecast earnings and revenue that could drive the USA500 higher.
  • RECENT US STIMULUS TO CONTINUE TO SUPPORT THE STOCK MARKETS: The United States recently injected $1.9 trillion into its economy under its American Rescue plan. Much of that money will be invested in the stock market. The rest will be spent in the economy-at-large and help drive profits higher for the major companies included in the USA500. There is a new $2.3 trillion fiscal stimulus bill proposed by the Biden Administration to support infrastructure. If passed, that money could also boost the earnings of many of the companies in the USA500.
  • COVID- 19 VACCINE OPTIMISM URGES U.S. STATES TO REOPEN. Many states, including Texas and Florida, are ending their pandemic restrictions and allowing their economies to re-open. Air Travel is also at its highest level since March 2020 according to TSA passenger statistics. The United States is making great progress vaccinating its people with almost 50% vaccinated at the time of this writing and nearly 3 million shots given a day. Many companies in the USA500 may see pent-up demand for their products and services. This could increase the profits and the stock prices of the companies in the USA500 index as the American economy comes roaring back to life from its forced hibernation.

USA500, April 8, 2021
Current Price: 4,066.00

USA500

Weekly

Trend direction

UP

Resistance 3

4,750.00

Resistance 2

4,450.00

Resistance 1

4,200.00

Support 1

3,950.00

Support 2

3,750.00

Support 3

3,550.00

Example of calculation base on weekly trend direction for 1.00 Lot*

USA500

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

6,840.00

3,840.00

1,340.00

-1,160.00

-3,160.00

-5,160.00

Profit or loss in €**

5,750.51

3,228.36

1,126.56

-975.23

-2,656.67

-4,338.10

Profit or loss in £**

4,978.85

2,795.15

975.39

-844.37

-2,300.17

-3,755.98

Profit or loss in C$**

8,634.68

4,847.54

1,691.59

-1,464.36

-3,989.12

-6,513.88

* 1.00 lot is equivalent of 10 units
** Calculations for exchange rate used as of 8:43 (GMT+1) 08/04/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details

Share It With Your Network
USA500 Chart
Update Time: -
Highest
Lowest
1M 5M H D W
Prices are loading..
Ready for trading?Start Now