Title
Potential Bearish Reversal
Type
Bearish Reversal
Preference:
Price is rising towards the pivot point of 0.6713 which is a pullback resistance level and could potentially reverse from here; we could see momentum carry price down to its 1st support at 0.6648 which is an overlap support that lines up with the 38.2% Fibonacci retracement level.
Alternative scenario:
If price breaks above the pivot point, it could hit the 1st resistance at 0.6733 which is a resistance that lines up with the 127.2% Fibonacci extension level.
To discuss this trading idea, head over to Tickmill Traders Club where you can get direct access to our team of world-class analysts.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.