On the H4, with price expected to reverse off the Ichimoku cloud resistance, we have a bearish bias that price will drop from our 1st resistance at 2761 where the horizontal pullback resistance and 23.6% Fibonacci retracement is to our 1st support at 2649 in line with the 127.2% Fibonacci extension. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 2863 where the 61.8% Fibonacci retracement and horizontal pullback resistance is.
Trading Recommendation
Entry: 2761
Reason for Entry:
Horizontal pullback resistance and 23.6% Fibonacci retracementTake Profit: 2649
Reason for Take Profit: 127.2% Fibonacci extension
Stop Loss: 2863
Reason for Stop Loss:
61.8% Fibonacci retracement and horizontal pullback resistance
