The US100 index has been in a strong bullish trend, but it has now reached a key area where buyers seem to be losing momentum. In this analysis, we will examine the supply and demand zones, market structure, and potential price scenarios.
Market Structure & Overall Trend
Recent Price Action: Price rallied strongly and is now trading near the 24,550 – 24,565 resistance zone.
Current Reaction: Candles are consolidating near resistance, showing signs of weakening bullish momentum.
This behavior typically indicates a potential pullback before any continuation to the upside.
🟥 Supply Zone (Resistance)
Key Level: 24,520 – 24,565
This is a clear supply block that may act as strong resistance. Sellers are expected to step in here and push the price lower.
🟩 Demand Zone (Support)
Key Level: 24,140 – 23,990
This zone represents a demand area where buyers are likely to re-enter the market. If price retraces to this level, it may serve as a temporary floor before another upward move.
Possible Price Scenarios
Primary Scenario (Bearish):
Price is expected to reject the current resistance and move lower.
A clean break below 24,300 could accelerate the move toward the 24,140 – 23,990 demand zone.
A bullish reaction from this area could form a short-term bottom and offer buy opportunities.
Alternative Scenario (Bullish):
If price breaks and closes above 24,565 with strong momentum, the bullish trend is likely to resume.
Next upside targets could be in the 24,700 – 24,750 range.
Conclusion
At this stage, a pullback is more likely than a continuation of the rally. The best strategy might be to wait for a correction into the demand zone and watch for bullish signals before entering long positions. Short-term traders may also take advantage of the move down toward support, while swing traders should look for confirmation of a reversal before buying.
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