The US100 index, in the 1-hour timeframe, remains within an upward channel, respecting its ascending trendline. However, the latest candlesticks show signs of weakening bullish momentum.
Key Levels on the Chart
Resistance Zone: 23,880 – 23,920 (Red Box)
- Price has reacted multiple times to this area without breaking through, indicating strong selling pressure.
- A decisive breakout above this resistance could pave the way toward higher highs.
Ascending Trendline (Purple)
- This trendline, formed since August 4, has been a significant support for the price.
- A breakdown below this line may be the first sign of a deeper correction.
Support Zone: 23,420 – 23,500 (Green Box)
- If the trendline breaks, this range is expected to act as the main support.
- Price reaction here will be crucial for determining the market’s next direction.
Read more about Price Action Patterns
Possible Scenarios
Bullish Scenario: If the price stays above the trendline and breaks through the 23,920 resistance, it could move toward 24,050 and possibly higher.
Bearish Scenario: A breakdown below the trendline and consolidation under 23,750 could lead the price down to 23,500 and then 23,350.
Conclusion
The overall trend for US100 remains bullish, but the repeated failure to break above resistance and the weakening candlesticks are warning signs for short-term traders. Monitoring how the price reacts to the ascending trendline and the key support and resistance levels will be essential for the next trading sessions.
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