Published On: Wed, Apr 26th, 2017

NI225: Fibonacci analysis

InstaForex

On the 4-hour chart the price reached the level of 19316.00 (correction 76.4%, coincidence with the oncoming fan line 38.2%). In case of the breakout the upward trend can continue to the level of 19460.00 and to the March maxima 19660.00, but the price will have to cross the oncoming downward fan. The price can grow in case of the positive market reaction to the USA tax reformation details, which are to be announced today. Stochastic is ready to leave the overbought area and can form a sell signal, so the price can lower to the level of 19100.00 (correction 61.8%) and 18926.50 (correction 50.0%, the area of the middle line of the Bollinger Bands).

Trading scenario

Open long positions above the level of 19316.00 with the target at 19460.00, 19660.00 and stop loss at 19220.00.

Alternative scenario

Sell from the level of 19220.00 with the target at 19100.00, 18926.50 and stop loss at 19300.00.

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Forex Analysis

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