On the 1-hour timeframe, the US100 index experienced a strong bullish rally before forming a top around the 24,560 – 24,580 zone. After that, price entered a corrective phase, confirmed by a Change of Character (CHoCH) signal near the local high — the first sign of a shift from bullish to bearish structure.
Key Zones on the Chart
Red Zone (24,520 – 24,560):
This is the main supply zone, formed after the structure break. If price pulls back to this level, sellers are likely to become active again and push the price lower.
0.5 Fibonacci Level:
Price is currently trading near the mid-range (50% Fibonacci retracement). While this level could provide short-term support, the strength of recent bearish candles suggests that a continuation to the downside is possible.
Green Zone:
This is the demand zone that overlaps with the 0.0 Fibonacci level. It is a key area where buyers may step in and create a potential reversal. This zone is critical for bulls to defend.
Possible Price Scenarios
🔴 Bearish Scenario:
If buyers fail to hold the mid-range, price could drop toward the green demand zone. The reaction here will be crucial — a strong bounce could signal a reversal, but a breakdown below this zone may lead to a deeper sell-off.
🟢 Bullish Scenario:
If price holds above the current level and we see a successful pullback into the red supply zone, there’s a chance of reclaiming higher levels and retesting previous highs. However, breaking through the red zone would require strong buying volume.
Conclusion
The market is currently in a corrective phase. The best strategy for now is to wait for price to approach one of the key zones (red or green) and then trade based on price action confirmation. Short-term traders can look for long opportunities near the green demand zone and watch the red zone for short setups if a rejection occurs.
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