4-Hour Analysis:
Big Picture: Yesterday’s session was extremely volatile. However, the bulls fiercely fought intraday selling. Not only did they kept the channel-based support, but they also regained hold of the previous All Time-High level. Buyers must maintain the 19,800 level in order to reclaim control of the short-term trend in their favor. Furthermore, volatility for the session is still expected.
On the Upside the initial resistance level is at 20,280-20,375. This is where intra-day resistance in the form of horizontal resistance and the EMA-50 can be found. The next level of resistance is evident at 21,000. Multiple congestion points exist between 21,850 and 22,850, restricting the upside for about a month. Stronghold over this level opens the door to further upside towards 23,750, 24,400, and eventually towards the 25,000 mark.
On the Downside the 19,800 level is once again functioning as intraday support. Then there’s support off the trendlines around 19,530-19,340. Price had significant support from these trendlines yesterday, but breaching them will expose price to 19,050 initially, followed by 18,590. Furthermore, any back-to-back hourly closings below 18,590 raises the prospect of a retest of the previous lows, followed by a drop towards 17,300 and 15,670.
