US equities printed modest gains on Monday, recording a fresh record high of 22956. Technically, what this move did was form a strong-looking H4 demand base at 22885-22908 that aligns perfectly with a H4 channel support etched from the low 22736.
Should this area be tested today and form a full or near-full-bodied H4 bullish candle, we would consider entering into a long position from here, with stops set just below the zone at 22883. Not only because of the converging channel support, but also because of the strong underlying trend the index is in right now.
Levels to watch/live orders:
• Buys: 22885-22908 (waiting for a reasonably sized H4 bullish candle to form – preferably a full, or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s tail). • Sells: Flat (stop loss: N/A).