Price is expected to move upwards out of this consolidation pattern, price is seen to be holding above the descending trendline resistance. Price is expected to rally up from the pivot level towards the 1st Resistance in line with the previous swing high and the 78.6% Fibonaaci extension level. Our bullish bias is further supported by the stochastic indicator, the K% line bounced off on the support level showing a strong upward movement. Alternatively, price might bounce downwards to the 1st support in line with the 61.8% Fibonacci extension.
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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.