Now, for those of you who trade Harmonics, there is a potential 4hr setting up on the chart as we write. This 4hr support completes nicely around a 4hr swap (support) level at 1127.6, which also converges with a 4hr ascending extended from the low 1109.4.
Not only does the path south appear ‘support free’ on the 4hr scale to hit this support today, additional supportive pressure is seen from the weekly swap (support) level at 1130.1. Therefore, in our opinion, there is a very good chance of a bounce from here.
Given the above, our objective for today is simple. Watch for price to hit the 1127.6 region and trade this beauty long. Considering the all-round confluence seen at this 4hr completion point, we have set a pending buy order at 1128.21, with a stop placed just below at 1123.20.
Levels to watch/ live orders:
• Buys: 1128.21 (Stop loss: 1123.20).
• Sells: Flat (Stop loss: N/A).