In yesterday’s price analysis, we discussed the levels that we would be focusing on for the evening session, noting that the range we were looking at was not all that different from the one we outlined in the earlier analysis. Volume was pretty weak, and while this can sometimes translate to sharp movements, we didn’t see any sustained momentum throughout the day. This lack of sustained momentum meant we weren’t able to get into any profitable positions, and finished the day pretty much where we started – well within range and net flat. Today is a fresh day, and action overnight suggests we may see a decent amount of volatility across the Thursday session. So, with this said, and as we head into the final two sessions of this week, what are the levels that we are focusing on in the market today, and where will we look to get in and out of any positions if price gives us the volatility we are after? As ever, take a quick look at the chart below to get an idea of the range in focus. It’s an intraday chart showing price on a 15-minute candlestick timeframe.
As the chart shows, the levels in focus are in term support at 447.5 and resistance to the upside at 451 flat. It’s a pretty narrow range, so we won’t be looking to trade intrarange – at least for the early European session. If things widen out this afternoon, we may bring our corrective reversal strategy into play.
For now, however, breakout is the only focus. With this in mind, a long entry will signal if price closes above resistance, and we will enter long towards an initial upside target of 455 flat. Looking short, we will enter to the downside if price closes below support, towards a target of 440. A stop loss on this position somewhere in the region of 449.5 will ensure we are taken out of the trade in the event of a bias reversal.
Charts courtesy of SimpleFX
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