Type:
Bullish Continuation
Key Levels:
Resistance: 1939.5
Pivot: 1904
Support: 1893.8
Preferred Case:
Prices are on bullish momentum and abiding to our ascending trendline support. We see the potential for a bounce from our Pivot at 1904 in line 78.6% Fibonacci retracement and 38.2% Fibonacci retracement towards our 1st resistance at 1939.5 in line with 61.8% Fibonacci Retracement . Our bullish bias is further supported prices trading above our ichimoku clouds .
Alternative Scenario:
If prices were to reverse, they can potentially dip towards our 1st support at 1893.8 which is a graphical swing low and also in line with 100% Fibonacci extension.
Fundamentals:
Amidst highest inflation recorded for the most developed countries, we are likely to see crowds flock to safety on safe-haven assets such as precious metals, supporting a overall bullish bias. As the renewed attacks and scheduled negotiations are on the way, we would expect much volatility from the asset.
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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.