On the 4-hour chart, the Dow Jones Industrial Average remains in a medium-term bullish structure, although it’s currently consolidating within a key demand zone where liquidity and buyer interest are concentrated.
Market Structure
Since forming a local bottom in early September, the index has shown multiple Breaks of Structure (BoS) to the upside, confirming a bullish trend. Each BoS was followed by a minor pullback into a demand zone, where buyers regained control, pushing the price higher. This indicates strong bullish sentiment in the medium term.
Demand Zones
Two major demand zones can be identified on the chart:
46,300 – 46,400 → The current area of consolidation. As long as this zone holds, buyers may attempt to push the price toward the 46,900–47,000 resistance area.
45,400 – 45,500 → A deeper demand zone acting as a major support level. If the upper zone fails, this could become the next potential reversal point.
Bullish Scenario
If the 46,300 zone holds and a bullish confirmation candle appears, the price could resume its upward movement, targeting recent highs around 46,800–47,000. A breakout above that resistance may open the path toward the psychological level of 47,200.
Bearish Scenario
A clear breakdown below 46,300 with a confirmed close underneath could trigger a deeper pullback toward the 45,400–45,500 demand zone. This bearish scenario would be confirmed if the current higher low structure is broken, leading to a downside BoS.
Conclusion
The market is currently in a decision zone. Holding above 46,300 will likely maintain the bullish momentum, while a break below it may lead to a corrective phase.
Cautious traders may prefer to wait for clear confirmation signals (such as a structure break or reversal candle) before entering new positions.
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