Type:
Bearish Reversal
Key Levels:
Resistance: 25.140
Pivot: 25.055
Support: 24.690
Preferred Case:
Prices have recently broken out of our ascending trendline support and are on bearish momentum. We see the potential for further bearish continuation from our Pivot at 25.055 which is a graphical overlap towards our 1st support at 24.690 in line with 38.2% Fibonacci retracement. Prices testing the upper ends of our donchian channel.
Alternative Scenario:
If prices were to reverse, they can potentially reach our 1st resistance at 25.115 which is the next swing high.
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.