Type:
Bullish Bounce
Key Levels:
Resistance: 51840.61
Pivot: 45521.82
Support: 43927.89
Preferred Case:
Price broke out of the descending trendline resistance, signifying a bullish momentum. We can expect price to bounce from the pivot level in line with 100% Fibonacci projection towards 1st Resistance in line with 100% Fibonacci projection. Our bullish bias is further supported by the MACD indicator where it is at the oversold area and the MACD line is above the signal line.
Alternative Scenario:
Alternatively, price could push further down to 1st Support in line with 127.2% Fibonacci projection and 127.2% Fibonacci retracement.
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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.