On the H4,with price moving below the Ichimoku cloud, we have a bearish bias that price will drop to our 1st support at 2343 in line with the 78.6% Fibonacci retracement and horizontal overlap support from our 1st resistance at 2589 in line with the horizontal overlap resistance and 23.6% Fibonacci retracement. Alternatively, price may break 1st resistance and head for 2nd resistance at 2676 in line with the horizontal swing high resistance and 38.2% Fibonacci retracement.
Trading Recommendation
Entry: 2589
Reason for Entry:
Horizontal overlap resistance and 23.6% Fibonacci retracement
Take Profit: 2343
Reason for Take Profit:Horizontal overlap support and 78.6% Fibonacci retracement
Stop Loss: 2676
Reason for Stop Loss:Horizontal swing high resistance and 38.2% Fibonacci retracement
