Daily Timeframe: The is currently showing some very nice price action. The sellers around the 1206.49 level have in our opinion been well and truly consumed. Check out the small wick at 1213.35, this candle very likely consumed the last of the sell orders which should theoretically allow prices to trade all the way up to at least a daily supply area coming in at 1241.95-1235.34. The reasoning for price being able to trade this high is simply because to the left of current price action shows that the majority of supply has likely been consumed, check out those prominent consumption wicks at 1222.41/1231.18, it’s a thing of beauty!
4hr Timeframe: The 4hr timeframe shows that in order for price to continue higher, the buyers have to break above a 4hr supply area coming in at 1215.24-1211.29. This will very likely attract follow-through buying up to at least the 4hr supply area at 1239.37-1233.79 (active sell orders are likely set just below at 1233.01), which is conveniently located just within the daily supply area mentioned above at 1241.95-1235.34. The reasons for price being able to trade that high is simply because (exactly the same as the analysis) to the left of current price shows that supply has already been consumed. However, even after a break above the 4hr supply area at 1215.24-1211.29, we have to be prepared for a sneaky fakeout below the low 1202.82 (marked in pink), as well-funded traders will likely need liquidity (sell orders for their buys) to push prices higher. This could provide a beautiful entry long if one times it correctly!
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1233.01 (Predicative stop-loss orders seen at: 1240.71).