Branching lower to the , support at 16083 is a level of interest to us. Not only because it is located close to the aforementioned weekly support, but also due to how well this daily barrier has held up in the past, specifically during the month of September 2015.
Now here is where things become interesting! H4 action shows that shortly after the NFP had its time in the spotlight, U.S stocks tumbled lower reaching lows of 16127 on the day. Just below this low, however, sits the daily support discussed above at 16083. We are confident that this barrier will bounce price should this market attack this area today/this week, as there are a number of technical aspects that support this view. Firstly, a nice-looking H4 Quasimodo is seen drawn from 16047; secondly a H4 support extended from the low 15647and thirdly a H4 38.2% Fibonacci at 16092. Couple all of this together with the current daily support and the backing of a weekly support a little lower down on the scale and we have ourselves a neat little buy zone to watch!
Depending on the time of day, our team has come to a general consensus that entering long from here at market is a viable option. To be on the safe side, we’d advise stops to be placed below the H4 , thus allowing the trade room to breathe. First take-profit target falls in around the 16240 region, followed closely by the H4 tops seen above at the 16450 area.
Levels to watch/live orders:
• Buys: 16083 region Looking at a market entry here (Stop loss: 15950 area).
• Sells: Flat (Stop loss: N/A).