Type:
Bearish Breakout
Key Levels:
Resistance: 1738.4
Pivot: 1721.1
Support: 1679.3
Preferred Case:
On the H4, with price moving within a descending channel and RSI moving in a descending trendline, we have a bearish bias that price will drop from pivot at 1721.1 where the pullback resistance is to 1st support at 1679.3 in line with 100% fibonacci projection and swing low support on the daily timeframe.
Alternative Scenario:
Alternatively, price could break pivot and rise to 1st resistance at 1738.4 where the 38.2% fibonacci retracement and swing high resistance 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.