US100 Reaches a Major Supply Level

Market Analysis – February 12

US100 has reached the major supply level of 12864.0. The bulls are facing resistance pushing through the zone.

US100 Key Levels

Demand Levels: 11324.0, 10691.0, 10347.0
Supply Levels: 12864.0, 13703.0, 15270.0

US100 Long-term trend: Bullish

US100 experienced multiple long-term downtrends in 2022.
The first of the bearish swings started in April. It was initiated after the Stochastic indicated the market was overbought. The selling trend was further confirmed by the cross of the Moving Averages (MA) of Periods 9 and 21 on the daily chart. The MA Period 9 (orange) took a u-turn and swerved below the MA Period 21 (green) which followed suit. The price declined steadily until the demand level of 11324.0 was reached.

The bulls took their turn after the cross of the Moving Averages in July. The price increased to the major supply level of 13703.0. The buyers got exhausted in August and gave way to the sellers. The second wave was delivered instantly without consolidation at the 13703.0 supply level. The price declined to $10691.0 in October. The trend changed in December, but the Bulls could not go far. In January, the Stochastic and the RSI (Relative Strength Index) showed the market was ready for a takeoff. The third test of the demand level of 10691.0 provided sufficient support to shoot the price higher.

US 100 Short-term Trend: Bearish

The market has ascended to $12864.0. The Bears are defending the supply level. On the 4-hour timeframe, a bearish shift in market structure is noticed. The market has declined to a bullish order block marked out on the daily chart. The buyers are currently willing to utilize the order block to pass through the resistance level at 12864.0.

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