Type:
Bullish Bounce
Key Levels:
Resistance: 34110.93
Pivot: 32994.12
Support: 31782.48
Preferred Case:
On the H4, with price moving above the ichimoku cloud, it supports our bullish bias that price will rise from the pivot at 32994.12 in line with the 50% fibonacci retracement and overlap support, to the 1st resistance at 34110.93 in line with the pullback resistance. Additionally, price is bullish on the MACD indicator, which further supports our bullish bias.
Alternative Scenario:
Price may break through support structure at the pivot level and drop to the 1st support at 31782.48 in line with the 78.6% fibonacci projection and 23.6% fibonacci retracement.
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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.