Type:
Bullish Rise
Key Levels:
Resistance: 1795.1
Pivot: 1700.5
Support: 1659.8
Preferred Case:
On the H4, with price moving in an ascending trendline on the RSI, we have a bullish bias that price will reverse off the pivot at 1700.5 at the pullback support in line with the 78.6% fibonacci projection to the 1st resistance at 1795.1 at the pullback swing high in line with the 50% fibonacci retracement and 78.6% fiboancci projection.
Alternative Scenario:
Alternatively, price may break the support structure at the pivot and drop to the 1st support at 1659.8 at the swing low in line with the 61.8% fibonacci projection.
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, hence we will need to exercise caution for this setup since our fundamentals and technicals are not completely aligned
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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.