This 4-hour US100 chart reflects a phase of high volatility following a clear price peak. The marked high around 26,200 indicates a temporary weakening of buyers and the beginning of a corrective phase, which has been reinforced by the formation of lower highs and lower lows, confirming sustained selling pressure.
The sharp drop toward the 24,000 level, highlighted by the horizontal support line, represents a strong demand zone, and the aggressive bullish reaction from this area confirms the return of short-term buyers. Subsequently, price entered a bullish correction but faced rejection upon reaching the supply zone around 25,600–25,700, which can be considered a key resistance level in the current structure.
The recent movement, characterized by the formation of higher lows, increases the probability of a continued pullback toward this resistance zone; however, unless a valid breakout and consolidation above this area occur, the dominant scenario remains range-bound movement or even a potential retracement toward lower support levels. Overall, the market is at a decision point, and price reaction to the upcoming supply zone will determine the next medium-term direction; a bullish break could open the door toward previous highs, while failure to break may keep the downside scenario toward the 24,000 region in play.
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