The higher-timeframe picture resembles the following:
• Weekly timeframe: Price remains capped between weekly supply at 1391.97-1328.04 and a nice-looking weekly decision-point level below at 1244.08. At the moment, the sellers appear in control, which should be the case really, as price has just recently traded out of the aforementioned weekly supply area.
• Daily timeframe: Price remains capped between the ignored daily decision-point level at 1292.52 and a daily decision-point level above at 1318.96. Buyers and sellers are currently battling it out around the lower limit of where price is capped, a break below would likely see price testing the long-term daily S/R flip level at 1277.36.
Price has dropped down to the ignored decision-point level at 1292.52 as reported may happen in the last analysis. It is likely higher prices will be seen from here as the candle that formed a high of 1312.07 on 29/07/14 likely cleared most of the sellers around the high marked with a circle at 1311.12, essentially meaning price is now relatively free to trade higher up to at least the 4hr R/S flip level at 1323.04
Our reasoning behind price being able to reach this high is because of the trading action to the left above the high 1311.12. The small is not there to depict a trend as such, it is more to show how pro money likely consumed the sellers as price was declining, thus very likely clearing the path north for the buyers.
Pending/P.A confirmation orders:
• The pending buy order (Green line) set just above the ignored decision-point level at 1292.52 at 1293.77 is now active. Our first take-profit level was hit late Friday at 1304.77, so do keep an eye out for our second and final take-profit level set at 1323.04.
• P.A confirmation buy orders (Red line) are seen just above the S/D flip area (1284.77-1280.53) at 1285.71. We have set a P.A confirmation buy order here simply because we could not find a logical area for the stop-loss order, so to avoid any deep spikes; we have decided to wait for confirmation.
• No pending sell orders (Green line) are seen in the current market environment.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: 1293.77 (Active) (SL: 1286.75 TP: 1304.77 1323.04). P.A.C: 1285.71 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: P.O: No pending sell orders seen in the current market environment. P.A.C: No P.A confirmation sell orders seen in the current market environment.