Possible long trade from the H4 support area 23579-23556?
Following a positive start to the day, US equities continued to propel higher on Tuesday. Led by Health care and information technology gains, the DJIA was able to crunch through a H4 resistance area at 23481-23455 (now acting support area) and also a H4 supply base at 23579-23556 (also now an acting support area).
With H4 price currently seen retesting 23579-23556 as support, this could be an ideal location to hunt for buying opportunities. Besides this market being entrenched within an incredibly strong uptrend, all three timeframes we watch show little resistance on the horizon. Therefore, record highs may be on the cards!
Suggestions: In view of noted structure, the team will be keeping a close eye on the current H4 support area for a buy opportunity today. For us to feel comfortable trading from this zone, we would insist on seeing a full or near-full-bodied H4 bull candle take shape. This will show buyer interest and increase the odds of price continuing north.
Data points to consider: US core durable goods m/m and US unemployment claims at 1.30pm; US revised UoM consumer sentiment at 3pm; FOMC meeting minutes at 7pm GMT.
Levels to watch/live orders:
• Buys: 23579-23556 (waiting for a reasonably sized H4 bullish candle to form – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (stop loss: N/A).
With H4 price currently seen retesting 23579-23556 as support, this could be an ideal location to hunt for buying opportunities. Besides this market being entrenched within an incredibly strong uptrend, all three timeframes we watch show little resistance on the horizon. Therefore, record highs may be on the cards!
Suggestions: In view of noted structure, the team will be keeping a close eye on the current H4 support area for a buy opportunity today. For us to feel comfortable trading from this zone, we would insist on seeing a full or near-full-bodied H4 bull candle take shape. This will show buyer interest and increase the odds of price continuing north.
Data points to consider: US core durable goods m/m and US unemployment claims at 1.30pm; US revised UoM consumer sentiment at 3pm; FOMC meeting minutes at 7pm GMT.
Levels to watch/live orders:
• Buys: 23579-23556 (waiting for a reasonably sized H4 bullish candle to form – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (stop loss: N/A).
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