- Recent bullish momentum was short lived after FCPO failed to break the 2055 - 2060 zone. As of now, FCPO seems to trade within a contracting triangle. Our primary projection of an expanded triangle looks bleak, but valid nonetheless.
- With no fundamental element to entice market to climb higher, the last bullish leg (wave c of (e)) of the expanding triangle is likely to develop under the pretext of contract roll over.
- It holds true, if and only if, FCPO is traded until the end of this week within the range, bound by the upper and lower lines of the converging triangle.
- That being said, it is essentially important to note that a symmetrical contracting triangle is a continuation pattern, so a strong bearish momentum can fully develop right off the bat.
- We will take a closer look at the following area as market unfolds.
- Daily Target: 1965 - 1970
Disclaimer: This only for education purpose. Not a buy call or sell call from us.
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