In recent movement, weekly price finally crossed swords with weekly support priced in at 1214.4. Note this level also happens to represent a Quasimodo support taken from the left shoulder marked with an orange arrow. In line with this weekly barrier, traders may have also noticed a daily Quasimodo support recently entered the fray at 1218.3. A rejection off of this hurdle has daily resistance at 1236.9 to target, along with nearby trend line support-turned resistance (taken from the low 1195.1).
Zooming in for a closer look at the H4 timeframe reveals clean resistance at 1228.0, which has held the market lower on three occasions this week (if you include the minor retest upon breaking lower that is). Unlike weekly and daily structure, the H4 candles have space to probe lower to nearby Quasimodo support at 1207.1. A level taken from July 2017!
Areas of consideration:
Although H4 price indicates further downside may be on the cards, entering into short positions is a chancy move knowing the bigger picture is testing supports.
However, should the market test the noted H4 Quasimodo level and hold in the shape of a full or near-full-bodied H4 bull candle this would, according to the technicals, be a high-probability long as it is in line with higher-timeframe flows. As usual, stop-loss orders are best placed beyond the rejection candle’s tail.
Zooming in for a closer look at the H4 timeframe reveals clean resistance at 1228.0, which has held the market lower on three occasions this week (if you include the minor retest upon breaking lower that is). Unlike weekly and daily structure, the H4 candles have space to probe lower to nearby Quasimodo support at 1207.1. A level taken from July 2017!
Areas of consideration:
Although H4 price indicates further downside may be on the cards, entering into short positions is a chancy move knowing the bigger picture is testing supports.
However, should the market test the noted H4 Quasimodo level and hold in the shape of a full or near-full-bodied H4 bull candle this would, according to the technicals, be a high-probability long as it is in line with higher-timeframe flows. As usual, stop-loss orders are best placed beyond the rejection candle’s tail.
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