Type:
Bullish Bounce
Key Levels:
Resistance: 130.356
Pivot: 118.018
Support: 105.984
Preferred Case:
On the H4, price is moving above the ichimoku cloud and within the ascending trend channel, which supports our bullish bias that price will rise from the pivot at 118.018 in line with the swing high and with the 78.6% fibonacci projection to the 1st resistance at 130.356 at the swing high . Additionally, presence of bullish presence pressure on the MACD indicator further supports our bullish bias.
Alternative Scenario:
Alternatively, price may break the support structure at the pivot and drop to the 1st support at 105.984 in line with the swing low and 50% 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.