US500 Analysis: Waiting for Confirmation at Key Support
The US500 is currently oversold and finding support at the 100 SMA, with price holding within a key bullish order block that previously set up the all-time high (ATH). This order block represents a level of significant institutional interest, as it required substantial volume to create the ATH. It has held as support twice before, reinforcing its importance.
Current Outlook
• Support Zone: Price is testing a strong bullish order block, a zone historically associated with high volume and institutional activity.
• Oversold Conditions: Indicators suggest oversold conditions, aligning with a potential setup for a retracement move.
• Waiting for a Bullish Change of Character: A bullish change of character (CoCh) will confirm that the current downward move has concluded and a retracement toward higher levels is beginning.
Plan of Action
We aim to take a long position upon confirmation of the CoCh, targeting the Fibonacci extension levels of 0.618 to 0.786. These levels are key for retracements and align with the potential formation of a lower high (LH), which would coincide with the descending triangle structure on the chart.
Patience is essential. The market will dictate our entry, and we will react accordingly based on the price action.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Trading involves significant risk, and you should only trade with capital you can afford to lose. Always conduct your own research and consult a licensed financial advisor before making decisions.
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