Type:
Bearish Reversal
Key Levels:
Resistance: 69185
Pivot: 68708
Support: 66493
Preferred Case:
Prices have recently broken out of our ascending trendline and retested it. We see the potential for a further bearish continuation from our Pivot at 68708 in line graphical overlap and 78.6% Fibonacci projection towards our 1st support at 66493 in line with 61.8% Fibonacci projection ad 78.6% Fibonacci retracement. Our bearish bias is further supported by prices trading below our Ichimoku cloud resistance.
Alternative Scenario:
If prices were to climb further, they can potentially rise towards our 1st resistance at 69185 in line with 127.2% 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.