Daily Timeframe: From the daily picture, we can see that the DOW is currently ranging between a daily decision-point demand area seen at 17561-17655, and a daily decision-point supply area coming in at 18029-17864, so let’s not all go hitting the buy buttons just yet!
4hr Timeframe: The recent movements on the DOW index saw price rally just beautifully from the 4hr demand area seen at 17561-17617 (located deep within the daily demand area at 17561-17655). Well done to any of our readers who managed to profit here!
Consequent to the recent move, price absolutely obliterated the 4hr supply area seen at 17902-17868, and continued north, testing the 4hr supply area above at 18029-17971 (located deep within the daily decision-point supply area at 18029-17864). We mentioned in our previous report that we were not comfortable trading the lower 4hr supply area at market, since we believed price would likely test and rebound from the more extreme area of supply seen above it, which as we can see it did just that. For those who read Monday’s report, you may recall that our team set a pending sell order just below this zone at 17962, which is now filled and in profit. We’re currently watching how price reacts at the recently broken 4hr supply (now demand) area, as this could very well repel the market. In the event, however, price breaks below here, we’ll then be looking to target the 4hr demand area seen below at 17623-17704 where the full position will be closed.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 17962 (Predicative stop-loss orders seen at: 18036).