Type:
Bullish Rise
Key Levels:
Resistance: 1827.6
Pivot: 1752.1
Support: 1681.3
Preferred Case:
On the H4, with price moving above the ichimoku cloud and along the ascending trendline, we have a bullish bias that price will rise to the pivot at 1752.1 in line with the overlap resistance, 61.8% fibonacci projection and 61.8% fibonacci retracement . Once we have upside confirmation that price has broken past pivot , we would expect bullish momentum to carry price to the intermediate resistance at 1795.3 in line with swing high resistance and 78.6% fibonacci projection . Should price break intermediate resistance, we would have a bullish bias that price would rise to the 1st resistance at 1827.6 where the pullback resistance, 100% fibonacci projection and 127.2% fibonacci extension are.
Alternative Scenario:
Alternatively, price may drop to the 1st support level at 1681.3 in line with the swing low support.
Fundamentals:
Equities continue to experience a volatile summer trading season as Russell 2000 futures continue to trend lower, giving us a bearish bias on Russell 2000.
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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.