Daily Timeframe: The on the other hand shows that price is currently trading relatively deep within a daily supply area seen at 1241.95-1231.52, and the only way price will hit the weekly support flip level mentioned above at 1244.08, is if all the selling opposition is consumed here.
4hr Timeframe: The 4hr timeframe shows that price is currently trading within a rather weak-looking 4hr supply area at 1239.37-1233.79. The reasoning behind us believing this area of supply to be weak is simply because of the amount of times it has been hit (marked with blue arrows), which consumed sellers every time, and thus weakness begins to show. So, with this in mind, and remembering the fact that price is currently trading out of a weekly demand area (1156.70-1194.45) at the moment, we feel that this 4hr supply area will be broken sometime soon, and as a result clearing the path north up to a very important 4hr supply area at 1250.85-1243.69 (active sell orders likely set just below at 1242.59).
Why do we deem this area as important? Take a look on the weekly chart around the weekly support flip level at 1244.08, now go down into the 4hr timeframe and you’ll see that the this 4hr supply area was likely where the ‘decision’ was made to break this major weekly level, which as a consequence makes this an extremely important area to have on your watchlist.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1242.59 (Predicative stop-loss orders seen at: 1251.50).