Type:
Bearish Breakout
Key Levels:
Resistance: 22482.57
Pivot: 20723.62
Support: 18860.18
Preferred Case:
On the H4, with price breaking out of a bullish channel and moving below the ichimoku indicator, we have a bearish bias that price will drop to pivot at 20723.62 where the -61.8% fibonacci expansion, 161.8% fibonacci extension and swing low support are. Once we have downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to 1st support at 18860.18 where the swing low support is.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 22482.57 where the pullback resistance and 38.2% fibonacci retracement are.
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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.