Title
DE30 H4 | Bearish Divergence
Type
Bearish Reversal
Preference:
Price is approaching our pivot at 15766.97, which is a swing high resistance level. If there is a reversal from this level, the price could drop to our 1st support at 15536.3, which is a swing low support level.
Alternative scenario:
If the price were to break above a pivot, it could potentially rally to 1st resistance level at 15975.97, which aligns with the -27.2% Fibonacci expansion. However, it's important to note that there is bearish divergence present, which indicates that the bears may be preparing to take control once again.
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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.