🌐Macro Background
Global equity markets tumbled as investors aggressively rotated out of technology shares. The shift has deepened a severe sell-off in chipmakers following their blistering rally earlier this year, dragging down regional bellwethers like TSMC, even as it beat market estimates.
All eyes are now on tonight’s U.S. Manufacturing & Industrial Production data and the preliminary Michigan Consumer Sentiment print for July to gauge the health of the economy.
📊Technical Structure
US100 index is trading within a descending channel, reflecting the dominant bearish pressure. The index has broken cleanly below its previous support level, which has now flipped into a key overhead resistance zone.
Resistance Zone: 28,898 – 29,034
Support Zone: 28,272 – 28,446
🎯Trade Setup
Given the strong bearish momentum and the clean structural breakdown, the trading strategy favours selling on rallies. A corrective bounce back toward the newly established Resistance Zone (28,898 – 29,034) presents a high-probability short entry opportunity.
📌Invalidation
The bearish outlook will be invalidated if the price undergoes a strong recovery and achieves a sustained 4-hour candle close above the 29,034 level. Such a breakout would invalidate the resistance flip and signal a deeper corrective rally back into the channel's upper half.
📌Trade Summary
Short the index on a corrective bounce toward the 28,898–29,034 resistance zone, targeting the 28,272–28,446 support zone with a stop loss placed above 29,100.
⚠️Disclaimer
This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.
Global equity markets tumbled as investors aggressively rotated out of technology shares. The shift has deepened a severe sell-off in chipmakers following their blistering rally earlier this year, dragging down regional bellwethers like TSMC, even as it beat market estimates.
All eyes are now on tonight’s U.S. Manufacturing & Industrial Production data and the preliminary Michigan Consumer Sentiment print for July to gauge the health of the economy.
📊Technical Structure
US100 index is trading within a descending channel, reflecting the dominant bearish pressure. The index has broken cleanly below its previous support level, which has now flipped into a key overhead resistance zone.
Resistance Zone: 28,898 – 29,034
Support Zone: 28,272 – 28,446
🎯Trade Setup
Given the strong bearish momentum and the clean structural breakdown, the trading strategy favours selling on rallies. A corrective bounce back toward the newly established Resistance Zone (28,898 – 29,034) presents a high-probability short entry opportunity.
📌Invalidation
The bearish outlook will be invalidated if the price undergoes a strong recovery and achieves a sustained 4-hour candle close above the 29,034 level. Such a breakout would invalidate the resistance flip and signal a deeper corrective rally back into the channel's upper half.
📌Trade Summary
Short the index on a corrective bounce toward the 28,898–29,034 resistance zone, targeting the 28,272–28,446 support zone with a stop loss placed above 29,100.
⚠️Disclaimer
This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.
ATFX is a globally regulated, award-winning fintech broker offering customer support in 20 languages.
👉🏼Start your trading journey with ATFX: bit.ly/3mLMPHz
👉🏼Start your trading journey with ATFX: bit.ly/3mLMPHz
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
ATFX is a globally regulated, award-winning fintech broker offering customer support in 20 languages.
👉🏼Start your trading journey with ATFX: bit.ly/3mLMPHz
👉🏼Start your trading journey with ATFX: bit.ly/3mLMPHz
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.