Potential longs off H4 demand at 24397-24538...
Dow Jones Industrial Average:
In recent hours, the Dow Jones Industrial Average fell sharply, down 1.64% at the time of writing. As a result of this, H4 price is now trading just north of a notable demand zone coming in at 24397-24538, along with the RSI indicator seen fast approaching oversold territory. Why this demand is noteworthy comes down to the following:
• The demand itself emphasizes a strong tone given how buyers strongly drove price higher from its base.
• The area houses a daily support level drawn from 24489. This is a support due to it being an ignored Quasimodo support and, therefore, likely holds unfilled buy orders.
• Positioned just beneath the 2018 yearly opening level at 24660 on the weekly timeframe.
Areas of consideration:
With the above points in mind, the H4 demand plotted at 24397-24538 remains of interest for longs today. Entry around the top edge of this zone is favourable, with stop-loss orders planted a couple of points beneath its lower edge. As for an initial take-profit target, the first port of call now rests around H4 supply at 25182-24996, offering at least a 1:2 risk/reward trade.
Today’s data points: US ADP Non-Farm Employment Change; US ISM Non-Manufacturing PMI; FOMC Member Bostic Speaks.
In recent hours, the Dow Jones Industrial Average fell sharply, down 1.64% at the time of writing. As a result of this, H4 price is now trading just north of a notable demand zone coming in at 24397-24538, along with the RSI indicator seen fast approaching oversold territory. Why this demand is noteworthy comes down to the following:
• The demand itself emphasizes a strong tone given how buyers strongly drove price higher from its base.
• The area houses a daily support level drawn from 24489. This is a support due to it being an ignored Quasimodo support and, therefore, likely holds unfilled buy orders.
• Positioned just beneath the 2018 yearly opening level at 24660 on the weekly timeframe.
Areas of consideration:
With the above points in mind, the H4 demand plotted at 24397-24538 remains of interest for longs today. Entry around the top edge of this zone is favourable, with stop-loss orders planted a couple of points beneath its lower edge. As for an initial take-profit target, the first port of call now rests around H4 supply at 25182-24996, offering at least a 1:2 risk/reward trade.
Today’s data points: US ADP Non-Farm Employment Change; US ISM Non-Manufacturing PMI; FOMC Member Bostic Speaks.
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