Type:
Bearish Reversal
Key Levels:
Resistance: 50648.85
Pivot: 48988.55
Support: 45667.94
Preferred Case:
Price is abiding to descending channel, signifying to overall bearish momentum. We can expect price to drop from pivot in line with 127.2% Fibonacci projection, 50% Fibonacci retracement ,127.2% Fibonacci extension and previous swing high towards 1st Support in line with 127.2% Fibonacci projection and horizontal support. Our bearish bias is further supported by the stochastic indicator where the %K line is at the resistance level.
Alternative Scenario:
Alternatively, price could breakout of the descending channel resistance and push to the 1st Resistance in line with 78.6% Fibonacci retracement and 161.8% Fibonacci projection.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.