Daily Timeframe: The shows that the index has now rallied for three consecutive days, with yesterday’s action showing price closing (9847) above a daily swap level seen at 9790. In the event that the buyers can hold price above this swap level, we feel there is a good chance a continuation move will be seen up towards a daily at 10048-10007 sometime soon.
4hr Timeframe: The 4hr timeframe shows that once the market opened at 9651 yesterday, price completely ignored the 4hr supply area seen at 9678-9583, and traded directly towards another 4hr supply area coming in at 9906-9809. That being the case, for further buying to be seen up to the daily mentioned above at 10048-10007, this area of supply will need to be consumed.
This is how we see the market moving today: price will likely see ranging action within the current 4hr supply for a few hours after the open, simply because there’s no doubt a lot of sell orders to chew through. Following this, a push higher will likely be seen above supply, this will trigger the last remaining stops, and trap any breakout buyers. Finally, we believe a sharp sell off will be seen down to the daily swap level mentioned above at 9790, which is where we’ll be looking to enter long with lower-timeframe confirmation, targeting around 10048, as per the red arrows.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).