On the H4, with price moving below our ichimoku cloud, we have a bearish bias that price will drop to our 2nd support at 702 in line with the 78.6% Fibonacci projection level from our 1st support at 1202 in line with the horizontal swing low support is. Alternatively, price may not break structure and head for our 1st resistance at 1739 where the pullback resistance and 23.6% Fibonacci retracement. Note that the bearish movement is only confirmed with price breaking the 1st support.
Trading Recommendation
Entry: 1202 Reason for Entry: Horizontal swing low support
Take Profit: 702
Reason for Take Profit: 78.6% Fibonacci projectionStop Loss: 1739
Reason for Stop Loss:
Horizontal pullback resistance and 23.6% Fibonacci retracement
