Type:
Bearish Drop
Key Levels:
Resistance: 4303.5
Pivot: 4145
Support: 3954.78
Preferred Case:
On the H4, with price entering a bearish pressure area on our MACD indicator, we have a bearish bias that price will drop from our pivot at 4145 in line with the 50% fibonacci retracement to our 1st support at 3954.78 in line with the 61.8% fibonacci retracement and 61.8% fibonacci projection.
Alternative Scenario:
Alternatively, price may reverse off the pivot and rise to the 1st resistance at 4303.5 at the horizontal 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.