This 4-hour chart of the Dow Jones Industrial Average shows that after a strong bullish impulse and the formation of new highs, the market has entered a corrective phase. The confirmed Break of Structure (BoS) on the higher timeframe supports the continuation of the broader uptrend, while the current pullback suggests the market is seeking liquidity before the next leg higher. After failing to sustain price action above the recent high, selling pressure increased, pushing price toward a clearly defined demand zone around 46,600–46,900. This area aligns with the 0.5 Fibonacci retracement and a key structural support, making it a critical decision zone for price. The more likely scenario is a reaction from this demand zone, followed by a short-term corrective bounce, and then a continuation of the bullish move as sell-side liquidity is absorbed.
As long as this support zone holds, the overall market structure remains bullish, and the current decline can be interpreted as a healthy pullback within an ongoing uptrend rather than a trend reversal.
Submit Your Comments
(Replying)
Please keep in mind to avoid offensive keywords and also fake information.
Be the first one to comment.