Type:
Bullish Continuation
Key Levels:
Resistance: 4.906
Pivot: 4.228
Support: 4.060
Preferred Case:
Prices are consolidating in a triangular pattern. We see the potential for a further bullish continuation from our Pivot at 4.228 in line graphical swing low and ascending trendline towards our 1st resistance at 4.906 in line with 61.8% Fibonacci projection. Our bearish bias is further supported RSI being at levels where bounces previously occurred.
Alternative Scenario:
If prices were to reverse, they can potentially dip towards our 1st support at 4.060 in line with 127.2% Fibonacci Projection and graphical swing low.
Fundamentals:
With inflation still being an issue in the west and no confirmation over was circumstances, we might still expect bullish upside on the commodity.
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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.