Type:
Bearish Dip
Key Levels:
Resistance: 14763.75
Pivot: 14662.75
Support: 14232.00
Preferred Case:
Price near pivot level of 14662.75 in line with 78.6% Fibonacci retracement. Price can potentially dip to the take profit level of 1.232.00 in line with 23.6% Fibonacci retracement and 161.8% Fibonacci projection. Our bearish bias is supported by the stochastic indicator as it is at resistance level.
Alternative Scenario:
Price can potentially rally to 14829.25 which is a graphical overlap resistance.
Fundamentals:
With the recent hawkish tone set by the US federal reserve. There is a possibility that the FED will do rate hikes more aggressively in the near future. However, with the numerous complications due to the sanctions place on Russia and its abundance of natural resources. The near term growth of the stock market continue to be murky and unpredictable. In this 2 scenario, both fundamentals and technicals align, thus it might be a good opportunity to look in to NQ1!
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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.