Daily view: From this angle; we can see that prices sold off from the daily supply area 18207-18117 down to the daily level extended from the low 17033. Overall, we’re expecting to see the bulls come back into the market here as a very neat-looking pattern is taking place.
4hr view: (As mentioned in the previous analysis, the DOW has been forming what we believe to be a long-term 4hr formation – upper 4hr extends from the high18279, while the lower 4hr line has been taken from the low 17556).
The DOW, as you can see, rebounded beautifully from the upper limits of the 4hr formation, which converged almost perfectly with 4hr at 18110. This sell off has once again placed price in ‘no-man’s-land’. With that, we feel there is a good chance that this index still has further to drop. Ideally, what our team would like to see is for price to retest the 4hr ascending extreme, more specifically, the 17817 4hr . This would be a high-probability reversal area since it boasts additional support from the daily ascending taken from the low 17033. However, committing to a buy position here by simply placing a pending buy order is a risky trade in our book, we would need to see lower timeframe buying strength before risking any capital on this idea, since fakeouts are common in this vicinity judging by the recent tests of this 4hr .
Our current buy/sell orders:
• Buy orders: 17817 (Predicative stop-loss orders seen at: dependent on where one confirms this area).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).