Type:
Bullish Bounce
Key Levels:
Resistance: 51911.11
Pivot: 45664.01
Support: 44018.65
Preferred Case:
Price broke out of the descending trendline resistance, signifying a potential bullish momentum. We can expect price to bounce up from the pivot level in line with graphical overlap support, 161.8% Fibonacci extension, 61.8% Fibonacci retracement and 161.8% projection towards 1st Resistance in line with previous swing high and 161.8% Fibonacci projection. Our bullish bias is further supported by the stochastic indicator where the %K line is at the support level.
Alternative Scenario:
Alternatively, price could push down to the 1st Support level in line with the horizontal support level.
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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.