• July 3, 2024
  • Stocks

US100 in Supply Zone. What to Expect?

  • Bearish Scenario: Sell below 20000 (if a bearish PAR* forms) with TP1: 883.00, 82.31, 82.11, and 81.70; 19900, 19858.30, 19800, or 19750 in extension with S.L. above 20060 or at least 1% of the account's capital.
  • Bullish Scenario after pullback to demand zone: Wait for a drop towards 19900 and formation of a bullish PAR* with TP: at 20100 and 20200, with S.L below 19858 or at least 1% of the account's capital. Apply Trailing Stop.
  • Anticipated Bullish Scenario: Buy after the second breakout above 20130 with targets at 20200, 20265, and 20300 in extension. With S.L below 20100 or at least 1% of the account's capital. Apply Trailing Stop.

Technical Analysis, Intradia and swing.

US100, H1

  • Supply Zones (Sells): 20084.20
  • Demand Zones (Buys): 20032.05 / 19900 / 19821 / 19745.05

Market optimism is reflected in the recent price surge of indices and the US100 renewing buys and reaching the supply zone around 20084.20. Thus, the intraday bullish continuation will be determined by a decisive breakout of this zone and the price closing above the 20129.45 resistance. In this scenario, we expect the necessary correction towards the liquidity zone that originated the surge, from where new buys towards 20200, the average daily bullish range at 20265.75, and 20300 by the end of the week can be considered.

On the other hand, a breakout below the Asian demand zone around 20032 and 20000 will pave the way for a more extensive correction towards one of the nearest demand zones such as 19900, the broken resistance at 19858.30, the average daily bearish range at 19821.85, or even with a broader retracement, the uncovered POC* from yesterday, Tuesday, July 2 at 19745, from where we can resume buying towards 20200 and 20300 in the coming days.

*Uncovered POC: POC = Point of Control: It is the level or the zone where the highest volume concentration occurred. If a bearish movement originated from it previously, it is considered a selling zone and forms a resistance area. Conversely, if a bullish impulse originated from it previously, it is viewed as a buying zone, usually situated at lows, thus creating support areas.


Trading foreign currencies on margin involves significant risks and may not be suitable for everyone, as high leverage can increase both potential gains and losses. Before entering the foreign exchange market, it is essential to evaluate your investment goals, personal experience, and risk tolerance.

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Author: Tibisay Ramos