Despite the aggressive rally north yesterday, price is now considered overbought in our opinion. Here’s why: Over on the weekly chart, it’s clear to see that price is now nibbling at the underside of a very strong-looking at 1307.4-1280.0. Not only this, but down on the this market is also responding to a clear resistance hurdle coming in at 1283.4.
Therefore, our plan of attack for this market today is relatively simple. Look for a lower timeframe sell setup (preferably between the M15 to M60) within the current H4 supply to jump in short, targeting H4 support at 1256.2 first and foremost.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1285.5-1278.5 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).