Type:
Bearish Breakout
Key Levels:
Resistance: 1830
Pivot: 1806.2
Support: 1785.2
Preferred Case:
On the H4, with prices moving below the ichimoku indicator and along a descending trendline, we have a bearish bias that prices will drop to our pivot at 1806.2 where the horizontal swing low support and 78.6% fibonacci retracement are. Once we have downside confirmation, we would expect bearish momentum to carry price to 1st support at 1785.2 in line with swing low support, 61.8% fibonacci projection and 100% fibonacci projection.
Alternative Scenario:
Alternatively, price could rise to our 1st resistance at 1830 in line with overlap resistance and 38.2% 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.