The Dow Jones index on the 4H timeframe is still moving within a bullish market structure. After several Breaks of Structure (BoS) in previous sessions, the index managed to create higher highs. However, the price recently entered a critical support zone that may determine the next direction.
Overall Trend and Market Structure
Based on the ascending trendline, the market remains in a short-term uptrend. The recent touch of the first support zone (46,000 – 46,200) is crucial because it overlaps with the trendline, increasing the probability of a bullish reaction.
Bullish Scenario
If the price holds above this support and shows strong bullish candles, we could expect a continuation of the uptrend. In this case, the next targets would be the previous highs (46,600 – 46,700) and potentially higher levels. A breakout above this zone could trigger a new wave of buying pressure.
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Bearish Scenario
If the price breaks below the current support and the trendline, the next major demand zone lies around 45,300 – 45,500. This area is important due to the liquidity and previous structure break, and traders might look for reversal signals there.
Key Notes for Traders
In a bullish scenario, a step-by-step entry after confirmation would be a safer approach.
In a bearish scenario, a clean break and candle close below 46,000 could be a signal to exit long positions.
Keep an eye on U.S. economic data releases, as they could create strong volatility in the index.
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