1. Market Structure Overview
1.1 Change of Character (CHoCH) – 86.01
Marked a bearish shift after price broke below a significant higher low.
Suggests that the prior bullish trend has lost strength.
1.2 Break of Structure (BOS) – 84.07
Confirmed a bearish continuation, breaking below the previous support level.
Validates the downtrend structure following the CHoCH.
2. Supply & Demand Zones
2.1 Supply Zones (Resistance)
Zone A: 85.40–86.01
Major Supply zone created by distribution before the sharp sell-off.
Acts as strong resistance; sellers aggressively entered at this level.
Zone B: 84.80–85.20 (0.5 Level)
Intermediate Supply—likely a reaction zone for institutional sell limits.
Price could stall or reverse from this level before testing Zone A.
2.2 Demand Zones (Support)
Zone C: 83.45–83.80
First Major Demand—price reacted here previously with a strong bounce.
A break below could expose lower demand.
Zone D: 82.50–82.90
Deeper Demand—represents a high-probability buying area if Zone C fails.
3. Price Action in Bordered Region
Current Price (~84.69): Price is climbing toward supply after a local low.
Expected Move: Price is likely to:
Reach into Zone B (84.80–85.20).
Potentially reject from supply and continue downward.
If rejection occurs, price is expected to revisit Zone C (~83.50–83.80).
Bullish Scenario: If price breaks above 85.20 and sustains above 86.01, bullish continuation becomes likely.
Bearish Scenario: Rejection from current supply areas confirms continuation of the downtrend.
4. Structure & Momentum Outlook
Bias: Bearish, unless 86.01 is broken and flipped into support.
Momentum: Price is currently retracing with moderate strength. If supply absorbs buyers in Zone B, momentum will likely reverse to the downside.
Key Level to Watch: 85.00–85.20 area for reversal confirmation.
5. Supporting Financial Context
Sector Rotation: The Utilities sector (XLU) has seen recent inflows and outflows tied to market volatility and interest rate speculation.
Rate Sensitivity: Utilities are interest-rate sensitive, and the market is pricing in uncertainty around Fed cuts, adding pressure to the sector.
Recent Sentiment: Some analysts view defensive sectors like utilities as range-bound or underperforming during growth-driven rotations (CNBC, Bloomberg).
1.1 Change of Character (CHoCH) – 86.01
Marked a bearish shift after price broke below a significant higher low.
Suggests that the prior bullish trend has lost strength.
1.2 Break of Structure (BOS) – 84.07
Confirmed a bearish continuation, breaking below the previous support level.
Validates the downtrend structure following the CHoCH.
2. Supply & Demand Zones
2.1 Supply Zones (Resistance)
Zone A: 85.40–86.01
Major Supply zone created by distribution before the sharp sell-off.
Acts as strong resistance; sellers aggressively entered at this level.
Zone B: 84.80–85.20 (0.5 Level)
Intermediate Supply—likely a reaction zone for institutional sell limits.
Price could stall or reverse from this level before testing Zone A.
2.2 Demand Zones (Support)
Zone C: 83.45–83.80
First Major Demand—price reacted here previously with a strong bounce.
A break below could expose lower demand.
Zone D: 82.50–82.90
Deeper Demand—represents a high-probability buying area if Zone C fails.
3. Price Action in Bordered Region
Current Price (~84.69): Price is climbing toward supply after a local low.
Expected Move: Price is likely to:
Reach into Zone B (84.80–85.20).
Potentially reject from supply and continue downward.
If rejection occurs, price is expected to revisit Zone C (~83.50–83.80).
Bullish Scenario: If price breaks above 85.20 and sustains above 86.01, bullish continuation becomes likely.
Bearish Scenario: Rejection from current supply areas confirms continuation of the downtrend.
4. Structure & Momentum Outlook
Bias: Bearish, unless 86.01 is broken and flipped into support.
Momentum: Price is currently retracing with moderate strength. If supply absorbs buyers in Zone B, momentum will likely reverse to the downside.
Key Level to Watch: 85.00–85.20 area for reversal confirmation.
5. Supporting Financial Context
Sector Rotation: The Utilities sector (XLU) has seen recent inflows and outflows tied to market volatility and interest rate speculation.
Rate Sensitivity: Utilities are interest-rate sensitive, and the market is pricing in uncertainty around Fed cuts, adding pressure to the sector.
Recent Sentiment: Some analysts view defensive sectors like utilities as range-bound or underperforming during growth-driven rotations (CNBC, Bloomberg).
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Looking for powerful AI trading signals? Visit ProSignal.ai and take your trading to the next level! or join our telegram channel at t.me/prosignalai
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.