Type:
Bullish Breakout
Key Levels:
Resistance: 107.213
Pivot: 106.428
Support: 105.835
Preferred Case:
On the H4, with prices moving above the ichimoku indicator and along the ascending trendline, we have a bullish bias that price will rise to the pivot at 106.428 where the swing high resistance, -27.2% fibonacci expansion , 161.8% fibonacci extension and 78.6% fibonacci projection are. Once there is upside confirmation that price has broken the pivot structure, we would expect bullish momentum to carry price to the 1st resistance at 107.213 in line with swing high resistance, -61.8% fibonacci expansion and 100% fibonacci projection.
Alternative Scenario:
Alternatively, price could drop to 1st support at 105.835 where the overlap support is.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.