Type:
Bearish Breakout
Key Levels:
Resistance: 1755.12
Pivot: 1691.08
Support: 1633.13
Preferred Case:
On the H4, with price showing bearish pressure on the MACD indicator and price recently breaking the ascending trend channel, we have a bearish bias that price will drop from our pivot at 1691.08 in line with the 38.2% fibonacci retracement to our 1st overlap support at 1633.13 in line with the 78.6% fibonacci projection .
Alternative Scenario:
Alternatively, price may reverse off the pivot and rise to the 1st resistance at 1755.12 in line with the swing high.
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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.