The bounce from the daily AB=CD 161.8% Fib ext. point at 1238.9 attracted fresh buying in recent trade, pushing the daily candles back up to a daily resistance area coming in at 1251.7-1265.2. Traders might have also noticed that surrounding this daily zone is a larger resistance area plotted on the weekly timeframe at 1251.7-1269.3 that intersects with the underside of a weekly channel support-turned resistance taken from the low 1122.8.
In spite of the two areas of resistance currently in play, H4 price recently retested 1251.4 as support, and shows room to advance up to at least H4 resistance penciled in at 1260.8. Beyond this level, we have an eyeball on November’s opening level seen at 1269.9 (essentially marks the top edge of the noted weekly resistance area).
Market direction:
A long at current prices is considered a risky deal, in our book. Aside from the higher-timeframe resistance areas in motion, there’s also the current downtrend to take into consideration. Since topping at highs of 1357.5 in early September, this market has struggled to print anything of note to the upside.
On account of the above, could a sell at the next upside H4 resistance (1260.8) be an option? It could, considering that it fuses nicely with a 38.2% H4 Fib resistance at 1260.5. To be on the safe side, however, waiting for additional H4 candle confirmation, preferably in the shape of a full or near-full-bodied formation, might be the better path to take. This will help avoid any fakeout above the resistances!
In spite of the two areas of resistance currently in play, H4 price recently retested 1251.4 as support, and shows room to advance up to at least H4 resistance penciled in at 1260.8. Beyond this level, we have an eyeball on November’s opening level seen at 1269.9 (essentially marks the top edge of the noted weekly resistance area).
Market direction:
A long at current prices is considered a risky deal, in our book. Aside from the higher-timeframe resistance areas in motion, there’s also the current downtrend to take into consideration. Since topping at highs of 1357.5 in early September, this market has struggled to print anything of note to the upside.
On account of the above, could a sell at the next upside H4 resistance (1260.8) be an option? It could, considering that it fuses nicely with a 38.2% H4 Fib resistance at 1260.5. To be on the safe side, however, waiting for additional H4 candle confirmation, preferably in the shape of a full or near-full-bodied formation, might be the better path to take. This will help avoid any fakeout above the resistances!
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