Review and dynamics
In anticipation of the results of the British referendum, which will be known on Friday, 04:00 (GMT 2), trades are sluggish in the financial markets. For the second consecutive day the American stock index S&P500 has traded in the narrow range at the level of 2084.0, which is crossed by support level of (ЕМА50, ЕМА144 on 4-hour chart), remaining above support levels of 2079.0 (ЕМА200 on 4-hour chart), 2072.0 (ЕМА50 on the daily chart), which suggests that positive dynamics in the index will continue.
The index has won back all losses sustained from the beginning of this year, remaining above support level 2037.0 (ЕМА200, ЕМА144 on the daily chart) since mid-March.
Until the announcement of the results of the referendum in the UK, markets will be sluggish.
If the UK exits from the EU, the financial market will experience turmoil with the further redistribution of the financial funds. The incidence of such decline is difficult to forecast.
The fact that the number of British people who wish to stay in the EU is slightly bigger than those who want to leave the Union, gives chances for the positive outcome of the referendum, which will have a positive effect on the global financial markets.
The index S&P500 will rise to the recent highs and the highest level of 2015 at the level of 2135.0. Cautious position of the US Fed will also contribute to this rise.
If the price breaks down support level of 2072.0, the index S&P500 will go to support levels of 2037.0 and 2000.0 (Fibonacci 61.8% to the decline since December 2015). It is possible that in event of the exit of the UK from the EU, the price can go to 1970.0 (Fibonacci 50.0%) and 1935.0 (Fibonacci 38.2%), which will account for 7.5% of the current price.
Support levels: 2084.0, 2079.0, 2072.0, 2062.0, 2045.0, 2037.0, 2013.0 and 2000.0.
Resistance levels: 2100.0, 2108.0 and 2135.0.
Sell Stop: 2080.0. Stop-Loss: 2085.0. Targets: 2072.0, 2062.0, 2050.0, 2037.0, 2023.0, 2013.0 and 2000.0.
Buy Stop: 2095.0. Stop-Loss: 2080.0. Targets: 2098.0, 2100.0, 2108.0, 2120.0 and 2135.0.
Positive dynamics continues
Support levels: 2084.0 and 2079.0.