On the H4, with price moving along an ascending trendline and above the ichimoku indicator, we have a bullish bias that price will rise to our pivot at 32504 where the pullback resistance is. Once there is upside confirmation of price breaking pivot structure, we would expect bullish momentum to carry price to 1st resistance at 33432 where the swing high resistance and -61.8% fibonacci expansion are.
Alternatively, price could drop to 1st support at 31864 where the pullback support, 38.2% fibonacci retracement and 78.6% fibonacci projection are.
Due to the House Speaker Nancy Pelosi’s trip to Taiwan capital, Taipei, the Dow Jones Index is exposed to downside risk and we have a bearish view on the Dow Jones Index. We’ll need to exercise caution for this setup because our fundamentals and technicals are not completely aligned.
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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.
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