Following yesterday’s FED meeting, we saw a nice upside move which is clearly recognizable by the long white candle which went up and through all resistances levels ( TS , KS , Mid Bollinger Band and clouds) in this 4 hours time frame.
As a result, the NQ1 reached an intraday high of 16’431.50 and is now showing some lack of momentum.
Indeed, looking back we can see successive former top around those levels.
Therefore, ongoing candle closing level will be important, as a failure to clearly move and hold sustainably above 16’450 would probably trigger another selling wave.
On the downside, the former cluster resistance, currently around 16’100 should be the first significant support zone to look at very carefully in that 4 hours time frame.
This area, also coincides with the clouds support zone and a failure to hold above the clouds would also add further pressure to the downside.
Below the clouds, next support to watch at is the new short term uptrend support line (in green) which is currently around 15’790.
Watch shorter intraday time frames which will help you to validate or invalidate implications on both sides.
Last but not least, the Head and Shoulders mentioned in previous analysis is still alive…and not dead yet !
Ironman8848 & Jean-Pierre Burki
As expected and mentioned this morning the failure to breakout the 16’450 area triggered a renewal selling pressure.
Currently facing the top of the H4 clouds support area and very close to the cluster support zone around 16’100 ahead of the clouds bottom @ 16’000.
Watch price action on H1, M30, M15 and M5 to get more clues about validation or invalidation of further downside.
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