Pending order set at 20750...
During the course of yesterday’s sessions, the DOW challenged the H4 supply at 21048-21015 (holds a H4 resistance at 21020 within). The reaction from this zone, as you can see, was beautiful! The momentum from this area forced the H4 candles below May’s opening level at 20929 and jabbed into a small area of support formed by March’s opening level at 20824/38.2% Fib support at 20806 (green area).
Of particular interest here is the fact that this H4 green zone is bolstered by a daily support area coming in at 20714-20821 which has been in motion since early March. However, before looking to try and long from here, make sure to take note of the 1:1 correction (see black arrows) that terminates within a H4 demand seen below at 20732-20771, which is also positioned INSIDE the said daily support area.
Our suggestions: Although the market has shown interest at 20806/20824, we’re drawn to the said H4 demand sitting below, due to the possible 1:1 correction! Our team has collectively decided to take an aggressive stance here and place a pending buy order at 20750 and place a stop at 20710. We’ll look to reduce risk to breakeven and liquidate 50% of our position at 20824.
Data points to consider: No high-impacting news on the docket today.
Of particular interest here is the fact that this H4 green zone is bolstered by a daily support area coming in at 20714-20821 which has been in motion since early March. However, before looking to try and long from here, make sure to take note of the 1:1 correction (see black arrows) that terminates within a H4 demand seen below at 20732-20771, which is also positioned INSIDE the said daily support area.
Our suggestions: Although the market has shown interest at 20806/20824, we’re drawn to the said H4 demand sitting below, due to the possible 1:1 correction! Our team has collectively decided to take an aggressive stance here and place a pending buy order at 20750 and place a stop at 20710. We’ll look to reduce risk to breakeven and liquidate 50% of our position at 20824.
Data points to consider: No high-impacting news on the docket today.
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