Type:
Bearish Reversal
Key Levels:
Resistance : 114.35
Pivot: 112.05
Support : 107.92
Preferred case:
Prices have recently broken out of our ascending trendline support. We see the potential for a further bearish continuation from our Pivot at 113.23 in line graphical overlap and 23.6% Fibonacci retracement towards our 1st support at 112.05 in line with 38.2% Fibonacci Retracement and 127.2% Fibonacci extension. Our bearish bias is further supported by Ichimoku forecasting the bearish move.
Alternative scenario:
If prices were to reverse, they can potentially reach our 1st resistance at 114.35 in line with 61.8% Fibonacci retracement.
Fundamentals:
With inflation still being an issue in the west and stalemate circumstances in the Russo-Ukraine crisis, we might still expect bullish upside on the commodity.
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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.