Type:
Bearish Drop
Key Levels:
Resistance: 1654.99
Pivot: 1559.47
Support: 1421.24
Preferred Case:
On the H4, with price moving below the ichimoku indicator, we have a bearish bias that price will drop to pivot at 1559.47 where the overlap support is. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to 1st support at 1421.24 where the swing low support, 61.8% fibonacci projection and 161.8% fibonacci extension.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 1654.99 where the pullback resistance, 100% fibonacci projection and 78.6% 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.