Type:
Bearish Reversal
Key Levels:
Resistance: 25.575
Pivot: 25.240
Support: 24.690
Preferred Case:
Prices are on bearish momentum and abiding to our descending trendline resistance. We see the potential for a further bearish continuation from our Pivot at 25.240 in line graphical overlap and 38.2% Fibonacci retracement towards our 1st support at 24.690 in line with 161.8% Fibonacci projection. 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 25.575 in line with 78.5% Fibonacci retracement.
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.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.