On the 4-hour chart of the Dow Jones Industrial Average, the overall market structure shows a strong bullish move followed by a corrective phase. After a clear Break of Structure (BoS) and confirmation of a Market Structure Shift (MSS), the price has retraced deeper and is now reacting to a key demand zone.
🔹 Market Structure
Initially, the market broke above the previous high (BoS), signaling bullish continuation. However, failure to sustain higher levels and the appearance of an MSS indicated growing short-term selling pressure — leading to the current correction.
🔹 Demand Zone
The price has entered a significant demand area, highlighted in blue on the chart. This zone previously acted as a dynamic support and also aligns closely with the 0.5–0.61 Fibonacci retracement levels, increasing the probability of a bullish reaction from buyers.
🔹 Possible Scenario
If the price manages to hold above this demand zone, a bullish rebound could take place, with potential upside targets near 47,800 – 48,200.
However, a clean break and 4H close below 46,600 would invalidate this setup and open the door for a deeper correction toward 46,200 or even 45,800.
🔹 Summary
- The medium-term trend remains bullish, but the market is currently in a correction.
- The current zone is a critical decision area for buyers.
- Whether this zone holds or breaks will define the next move for the Dow Jones.
Submit Your Comments
(Replying)
Please keep in mind to avoid offensive keywords and also fake information.
Be the first one to comment.