Despite daily price printing a bearish pin bar around the underside of a daily supply zone pegged at 1288.1-1278.3 during yesterday’s segment, the bulls have continued to press higher in recent hours. What’s interesting about this daily zone is that it’s glued to the underside of an area comprised of two weekly Fibonacci extensions 161.8/127.2% at 1313.7/1285.2 taken from the low 1188.1 (green zone).
The recent advance has, as you can see on the H4 chart, led to price challenging the H4 supply zone seen at 1288.1-1284.2. As mentioned in Monday’s report, this H4 supply area is attractive since it is located within the upper limits of the daily supply and also positioned within the lower limits of the green weekly zone. Therefore, we believe it will, at the very least, bounce price lower.
Our suggestions: Our team is now short from 1284.0 with a stop planted at 1288.9. Ultimately, we’re going to be looking to reduce risk to breakeven around the nearby H4 demand marked with a green arrow at 1278ish. From thereon, we’d have our eye on May’s opening level at 1270.5, which happens to be positioned within a daily support area at 1271.0-1261.7 (the next downside target on the daily timeframe).
The recent advance has, as you can see on the H4 chart, led to price challenging the H4 supply zone seen at 1288.1-1284.2. As mentioned in Monday’s report, this H4 supply area is attractive since it is located within the upper limits of the daily supply and also positioned within the lower limits of the green weekly zone. Therefore, we believe it will, at the very least, bounce price lower.
Our suggestions: Our team is now short from 1284.0 with a stop planted at 1288.9. Ultimately, we’re going to be looking to reduce risk to breakeven around the nearby H4 demand marked with a green arrow at 1278ish. From thereon, we’d have our eye on May’s opening level at 1270.5, which happens to be positioned within a daily support area at 1271.0-1261.7 (the next downside target on the daily timeframe).
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