Type:
Bullish Bounce
Key Levels:
Intermediate Resistance: 1988.76
Resistance: 2014.86
Pivot: 1927.87
Support: 1903.12
Preferred Case:
Price is moving within the descending trend channel and is approaching pivot level at 1927.87 in line with the 78.6% fibonacci retracement, 100% fibonacci projection and horizontal pullback support. We have a bullish bias that price may bounce off this confluence area and rise to our intermediate overlap resistance at 1988.76 in line with the 38.2% and 23.6% fibonacci retracements, or to our 1st resistance at 2014.86 at the swing high in line with 50% fibonacci retracement and 61.8% fibonacci projection.
Alternative Scenario:
Price may break pivot at the horizontal pullback support and drop to 1st support at 1903.12 at the swing low.
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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.