Looking at the H4 chart, however, the buyers and sellers appear to be confined within a formation (1190.8/1216.8). Traders may want to be careful trading this pattern as the majority will be looking for a continuation move here. Nevertheless, with what we’ve noted on the higher timeframes (see above) we have absolutely no interest in selling the break of this pattern! Instead, what we’re currently watching for is a sustained move above H4 resistance at 1212.2. This would likely open the flood gates up to H4 supply at 1239.9-1235.7 and at the same time confirm strength from the higher timeframe zones discussed above.
To trade this potential move, however, we’d need to see price retest 1212.2 as support together with a lower timeframe buy setup – a break of supply, a break of a or a collection of buying tails planted at or very close to the traded level is what we generally look for.
Levels to watch/live orders:
• Buys: Watch for offers to be consumed around 1212.2 and look to trade any retest seen thereafter (lower timeframe confirmation required).
• Sells: Flat (Stop loss: N/A).