Type:
Bullish Bounce
Key Levels:
Resistance: 40577.91
Pivot: 35991.49
Support: 34306.68
Preferred Case:
Price is abiding to the descending channel, signifying an overall bearish momentum. However, price is reacting at the support level of the channel, hence, we can expect a short-term bullish bounce from the pivot level. We can potentially see price bounce from the pivot level in line with 61.8% Fibonacci projection towards 1st Resistance level in line with 161.8% Fibonacci projection, 78.6% Fibonacci retracement and channel resistance. Our short-term bullish bias is further supported by the stochastic indicator where %D line bounced at the support level.
Alternative Scenario:
Alternatively, price could push further down to 1st Support in line with 78.6% Fibonacci projection and previous swing low.
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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.