Daily Timeframe: Yesterday was a fantastic day for anyone who entered long from the daily swap level seen at 17362, as prices rallied a respectable 228 points (this figure includes pre/after-market hours trading). In the event that the buyers continue with this tempo, we see very little reason why prices cannot continue rallying north up to the daily swap area seen above at 17767-17717.
4hr Timeframe: The 4hr timeframe shows some very interesting price action . We feel that the 4hr decision-point demand area at 17326-17381 (located around the aforementioned daily swap level) has likely seen a fakeout. The reason for why is simply because the buyers created enough upside momentum to consume a 4hr decision-point supply area seen at 17573-17518. As a result, this has also likely opened the gates for prices to challenge the aforementioned daily swap area.
This is all well and good, but how could we take advantage of this potential move north? As we have direction from the 4hr timeframe and confluence from the higher timeframes all locked in. For us, the most conservative way to enter long here would be either at the mid-range 4hr Quasimodo at 17460, or just below at a small 4hr decision-point demand area marked in green at 17381-17416. Entering long at the 4hr Quasimodo would however require lower-timeframe buying confirmation, since there’s very little stopping price from ignoring this level and trading down towards the aforementioned 4hr decision-point demand area. Considering the momentum north seen from this 4hr decision-point demand area, we’d be relatively comfortable setting a pending buy order just above here at 17422 with a stop set just below the zone at 17371, if/when price reaches here.
Current buy/sell levels:
• Buy orders: Watching for lower-timeframe confirmation around 17460 (Predicative stop-loss orders seen at: dependent on where one confirms this level) 17422 (Predicative stop-loss orders seen at: 17371).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).