US equities extended losses on Tuesday as investors continue to diversify their portfolios on their expectations of how the US tax reform will affect performance. Another thing that may be worth highlighting is the H4 harmonic bat pattern that completes around the 88.6% H4 Fib support at 23992. Coupled with the 24K round number acting as potential support and the top edge of a H4 demand at 23891-23956, this could be an area worthy of consideration for longs.
The only drawback is that the H4 harmonic pattern has no higher-timeframe confluence! The closest support can be seen on the daily timeframe at 23565.
Direction: Providing that the H4 harmonic bat pattern completes today, there’s a good chance that price action will bounce from here. One should pay attention to stop placement, however, since there is little stopping H4 price from faking below the upper H4 demand into the lower H4 base at 23802-23847.
Data points to consider: US ADP non-farm employment change at 1.15pm GMT.
Areas worthy of attention:
Supports: H4 support at 24000; H4 88.6% Fib support at 23992 (harmonic completion point); H4 demand at 23891-23956; H4 demand at 23802-23847; Daily support at 23565. Resistances: …