With weekly supply at 1098.6-1121.7 providing a technical ceiling for this market at the moment and daily action showing room to dive lower down to at least support seen at 1078.9, this is still a sellers’ market in our opinion. With that being said, we have our eye on two zones today:
1. The area between the range resistance at 1093.1 and resistance above at 1095.6. This small, but albeit significant area, has fakeout written all over it so it is certainly somewhere we’d consider selling should the lower timeframes agree (confirmation needed).
2. The second area falls in a little higher on the curve – the H4 supply above at 1103.2-1100.8. Not only is this area sitting deep within both the weekly supply at 1098.6-1121.7 and daily supply at 1098.6-1108.6, it also boasts a potential reversal zone derived from a . As we all know, a is only invalidated if the X point is breached, therefore, our sell zone will not just comprise of the H4 supply mentioned above, it will also include the H4 supply above it at 1110.3-1108.0. Stops, of course, would be best placed above the X point whether you enter at market or wait for the lower timeframes to confirm selling strength exists.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1095.6/1093.1 region Tentative – confirmation required (Stop loss: dependent on where one confirms this area). 1100.8/1113.0 Tentative – confirmation required (Stop loss: 1113.5 area).