On the H4, with price breaking out of an ascending channel and reversing off the stochastic resistance, we have a bearish bias that price will drop to the 1st support at 1642.25 where the pullback support and 50% fibonacci retracement are. Once there is downside confirmation that price has broken 1st support, we would expect bearish momentum to carry price to 2nd support at 1357.12 where the swing low support and 78.6% fibonacci projection are. Alternatively, price could rise to 1st resistance at 1792.30 where the overlap resistance, 50% fibonacci retracement and 61.8% fibonacci projection are.
Trading Recommendation
Entry: 1642.25
Reason for Entry:Pullback support and 50% fibonacci retracement
Take Profit: 1357.12
Reason for Take Profit:Swing low support and 78.6% fibonacci projection Stop Loss: 1792.30
Reason for Stop Loss:
Overlap resistance, 50% fibonacci retracement and 61.8% fibonacci projection
