Type:
Bearish Breakout
Key Levels:
Resistance: 1830.3
Pivot: 1805.8
Support: 1783.3
Preferred Case:
On the H4, with prices moving below the ichimoku indicator and along a descending trendline, we have a bearish bias that prices will drop to our pivot at 1805.8 where the horizontal overlap support is. Once we have downside confirmation, we would expect bearish momentum to carry price to 1st support at 1783.3 in line with swing low support and 127.2% fibonacci extension.
Alternative Scenario:
Alternatively, price could rise to our 1st resistance at 1830.3 in line with overlap resistance, 61.8% fibonacci retracement and 78.6% fibonacci projection.
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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.