Potential selling opportunities between 25815/25603
US equities began Tuesday in negative territory, amid depressed market sentiment across the board. After touching lows of 24730: the 161.8% H4 Fib ext. point at 24821, however, the index staged a strong recovery in the second half of the day, trimming a large portion of recent losses. In terms of H4 structure, active selling may reside around August’s opening level seen nearby at 25376. A decisive break of this line, nevertheless, could witness a move towards resistance at 26034.
Supporting the recent recovery is weekly trend line resistance-turned support (taken from the high 25807). Assuming the buyers continue to defend this hurdle, the next upside objective can be seen at a resistance area drawn from 25764-26157. Further adding to yesterday’s support, daily demand at 24897-25096, although suffering a break to the downside, remained in the fight and produced a reasonably nice-looking daily bullish pin-bar formation. Additional upside from this region has a daily resistance zone plotted at 25807-25603 in view.
Areas of consideration:
Intraday traders will likely be honing in on shorts today, following Tuesday’s lower low. This, according to the OVERALL picture, is a chancy move off August’s opening level at 25376, as higher-timeframe flows indicate a move towards the underside of daily and weekly resistance areas at 25603 and 25764, respectively.
According to our technical studies, the yellow H4 zone at 25815/25603, therefore, is considered the higher-probability base to consider selling from. A H4 bearish candlestick pattern printed from will likely draw in a truckload of sellers, first targeting August’s opening level at 25376, followed then by the top edge of daily demand at 25096 and then H4 support at 24957.
Traders have the option of defining stop/entry parameters by following the selected candlestick rules, or simply selling 25603 and positioning stops above 25815.
Today’s data points: FOMC members Bostic and Mester speak.
Supporting the recent recovery is weekly trend line resistance-turned support (taken from the high 25807). Assuming the buyers continue to defend this hurdle, the next upside objective can be seen at a resistance area drawn from 25764-26157. Further adding to yesterday’s support, daily demand at 24897-25096, although suffering a break to the downside, remained in the fight and produced a reasonably nice-looking daily bullish pin-bar formation. Additional upside from this region has a daily resistance zone plotted at 25807-25603 in view.
Areas of consideration:
Intraday traders will likely be honing in on shorts today, following Tuesday’s lower low. This, according to the OVERALL picture, is a chancy move off August’s opening level at 25376, as higher-timeframe flows indicate a move towards the underside of daily and weekly resistance areas at 25603 and 25764, respectively.
According to our technical studies, the yellow H4 zone at 25815/25603, therefore, is considered the higher-probability base to consider selling from. A H4 bearish candlestick pattern printed from will likely draw in a truckload of sellers, first targeting August’s opening level at 25376, followed then by the top edge of daily demand at 25096 and then H4 support at 24957.
Traders have the option of defining stop/entry parameters by following the selected candlestick rules, or simply selling 25603 and positioning stops above 25815.
Today’s data points: FOMC members Bostic and Mester speak.
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