Type:
Bearish Reversal
Key Levels:
Resistance: 1784.2
Intermediate Resistance: 1712.0
Pivot: 1784.2
Support: 1664.3
Intermediate support: 1693.9
Preferred Case:
On the H4, with price moving below the ichimoku cloud and in a descending trendline, we have a bearish bias that price will drop if price breaks the intermediate support at 1693.9 at the swing low to the 1st support at 1664.3 in line with the 100% fibonacci projection .
Alternative Scenario:
Alternatively, if price breaks the intermediate pullback resistance at 1712.0, price may rise to the pivot at 1784.2 at the swing high in line with the 23.6% fibonacci retracement . If price breaks the pivot, we have upside confirmation that price will continue to rise to the 1st resistance at 1784.2 at the pullback resistance in line with the 50% fibonacci retracement.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.