Type:
Bullish Bounce
Key Levels:
Resistance: 51913.04
Pivot: 49304.35
Support: 48017.39
Preferred Case:
Price broke out of the descending trendline resistance signifying a bullish momentum. Price should push further up if it closes above the pivot level in line with 61.8% Fibonacci projection and push towards 1st Resistance in line with 100% Fibonacci projection and 127.2% Fibonacci retracement. Our bullish bias is further supported by the Ichimoku Cloud where the price is holding above it.
Alternative Scenario:
Alternatively, price could drop down from the pivot level to 1st Support in line with 38.2% Fibonacci retracement and 61.8% Fibonacci projection.
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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.