Now, given that the majority of buyers have likely been cleared out here, and weekly action is selling off nicely from supply at 1098.6-1121.7, our team has their eye on shorting from 1084.5 – daily resistance (as per the green arrows). Not only is this a strong level in and of itself, it also fuses nicely with the 61.8% Fibonacci level at 1086.4. Due to this being a fixed level and not a zone, however, our team has come to a general consensus that waiting for lower timeframe confirming price action before committing capital here is (for us) the more logical approach.
Ultimately though, we’re extremely confident that price will bounce from here if price trades this high. Therefore, we’d happily enter short from simply a H4 selling tail aka a pin-bar candle. Should we manage to secure an entry here today, the first take-profit target would be the recently faked H4 demand directly below since there may be residual orders left over from the whipsaw. Following this, we’re eyeing the H4 demand below at 1058.0-1062.2 as our final take-profit zone, which sits just above weekly demand coming in at 1026.5-1054.8.