Type:
Bearish Reversal
Key Levels:
Resistance: 4.934
Pivot: 4.709
Support: 4.415
Preferred Case:
Prices are on bearish momentum and abiding by a descending trendline. We see the potential for a further bearish continuation from our Pivot at 4.709 in line graphical overlap, descending trendline and 61.8% Fibonacci retracement towards our 1st support at 4.415 in line with 61.8% Fibonacci projection. Our bearish bias is further supported by Ichimoku trading below our Ichimoku cloud resistance.
Alternative Scenario:
If prices were to climb further, they can potentially rise towards our 1st resistance at 4.934 in line with 61.8% Fibonacci Projection.
Fundamentals:
With inflation still being an issue in the west and no confirmation over was circumstances, we might still expect bullish upside on the commodity. TA and FA are in conflict, thus we would recommend investors to be careful when trading 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.