Type:
Bearish Reversal
Key Levels:
Resistance: 121.24
Pivot: 115.71
Support: 104.43
Preferred Case:
Prices are on bearish momentum. We see the potential for a further bearish continuation from our Pivot area at 115.71 in line graphical overlap and 61.8% Fibonacci retracement and 127.2% Fibonacci Extension towards our 1st support at 104. 43 in line with 50% Fibonacci retracement.
Alternative Scenario:
If prices were to climb further, they can potentially rise towards our 1st resistance at 121.24 in line with 161.8% Fibonacci projection.
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. TA and FA are in conflict, thus we would recommend investors to be careful when trading 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.