Type:
Bearish Breakout
Key Levels:
Resistance: 33470.97
Pivot: 32599.28
Support: 31879.57
Preferred Case:
On the H4, with price breaking out of the ascending channel and moving below the ichimoku indicator, we have a bearish bias that price will drop to pivot at 32599.28 where the pullback support and 38.2% fibonacci retracement are. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to 1st support at 31879.57 where the pullback support, 61.8% fibonacci retracement and 127.2% fibonacci extension are.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 33470.97 where the pullback resistance is.
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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.