Daily Timeframe: Yesterday’s trading session saw further buying come into the market. This is not a good sign for anyone who shorted around the daily coming in at 10048-10007. Check out the beautiful array of buying tails that formed, one can almost feel the buying pressure building for a break higher!
1hr Timeframe: The 1hr timeframe shows that price still remains consolidating between a 1hr supply area at 10002-9988, and a 1hr demand area coming in at 9867-9903.
The buyers attacked the upper limits of this range twice yesterday. The first touch (marked with a red arrow) gave us little chance to enter short unless one is comfortable entering on the 1/3 minute timeframes. The second touch (marked with a blue arrow) saw too small a sell off to form any worthwhile price action. With that in mind, one can see the potential buildup of buying pressure forming here. Notice the first touch saw quite an aggressive reaction considering the location, but the second touch was weak indicating this is likely a buyers’ market at the moment.
Taking the above into consideration, our bias is currently long 80% and short 20% - the 20% comes from price trading around the weekly 10048 high. In the event that a breakout north is seen today, and price holds above the 10002-9988 area, we will consider this as confirmation of buying strength. That being said though, we’ll not be executing any buy orders until price trades above 10048, so at this point in time we are going to sit on the side lines, and watch how price action develops before making any decisions.
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).