Type:
Bearish Drop
Key Levels:
Resistance: 8.055
Pivot: 7.665
Support: 7.340
Preferred Case:
On the H4, with price breaking the ascending trendline, we have a bearish bias that price may drop from our pivot at 7.665 where the overlap resistance is to the 1st support at 7.340, where the 50% fibonacci retracement is.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 8.055 where the 38.2% fibonacci retracement is.
Fundamentals:
The Nord Stream gas pipeline has been the recent headline news with Gazprom halting an engine, and the Kremlin commenting that there were ‘some problems’ with another Nord Stream turbine. As the news develops significant volatility in energy prices is expected as uncertainty over gas supply to Germany and the Eurozone intensifies.
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.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 68% 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.
Written by Desmond Leong
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.
Previous Post
Micro E-mini S&P 500 Index Futures (MES1!) ,H4 Potential For Bullish Rise
Source: Tickmill