US100 4h chart

Even though the buying volume is there, the US100 price is still trading in a bearish flag. Will this pattern play out and we will see a correction soon? Let's look at possible price moves for today and the beginning of next week.

After a very strong rally up from 14120 up to 16110, the US100 price is losing momentum and it feels that a correction might be in place. For now, 16120 might be a local top. 

On 4h, the US100 painted a bearish flag and for now, the US100 price is trading below the median of it. As long as the price remains and will continue to get a rejection from the channel median, we can expect a first move down into the bottom of the channel, currently at the 15910 area.

In case the bulls might try another attempt to push the price higher, the 16170 area (top of the channel) will act as resistance.

Once the bearish flag is broken below and confirmed, we can expect the bears to push the price lower into the first liquidity zone and local lows.

In case of a stronger selloff, we should keep an eye on the key diagonal of support, now at the 15430. I marked more key support levels and a few candles that need to be compensated/filled (marked with h blue channel) at some point.

Another indicator that we should consider in our next trade is the RSI 4h bearish divergence.

Until the bearish flag is not broken down and confirmed, the possible correction is not confirmed. 

Trade safe and manage your risk

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