Daily Timeframe: The shows that price still remains trading around a small daily supply area at 18098-18045. If further downside is seen from here, price will likely retest the daily swap level coming in just below at 17896.
4hr Timeframe: After a lackluster performance on the DOW yesterday, price is still seen lingering around the 4hr supply area at 18047-18014. This may be a good time to recap so that we’re all on the same page. The weekly chart shows price is largely , but is close to testing the overall high. Meanwhile, the reveals that price is currently trading around a daily supply at the moment (see above for levels). So, where does this leave us on the 4hr timeframe? It was reported in yesterday’s analysis that the buyers spiked above the aforementioned 4hr supply, and this, could have potentially opened the doors to new highs – we still believe this to be the case. The reason for this is simple. With the current 4hr supply area likely consumed (the recent spike), take a look above this area to the left, can you see how supply may also likely be consumed? There are two 4hr supply areas that jump out to us; the first comes in at 18093-18062, and the second at 18061-18046. Both of these areas have already been hit, and with that, some of the selling pressure here likely taken out. Therefore, if strong buyers come into the market, these small areas of 4hr supply will likely not stand much of a chance.
For the time being, we are not interested in selling due to the above. With regards to buying however, we currently see two options. Firstly, wait for price to close above and retest this 4hr supply area as demand, and then consider entering long with lower timeframe confirmation. Secondly, if price sees a retracement back down to the aforementioned 4hr swap area, one could then begin looking for confirmed buys since we already have a signal (the break above 4hr supply) that price likely wants to trade higher.
Current buy/sell orders:
• Buy orders: intend to watch for lower timeframe confirmation around the 4hr swap area at 17952-17911 if price retraces this far (Predicative stop-loss orders seen at: 17885).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).