Technical Breakdown on US 100 | 1H Timeframe

Technical Breakdown on US100 Cash CFD – 1H Chart Analysis using Volume Profile, Gann, and CVD + ADX

1. Key Observations (Volume, Gann & CVD + ADX Focused)

a) Volume Profile Insights:

Value Area High (VAH): 21,250

Value Area Low (VAL): 20,850

Point of Control (POC): 20,847.54 (Previous), 20,084.76 (Earlier POC)

High-volume nodes:

Strong cluster near 20,850–21,000: confirmed price acceptance.

Minor node around 21,235–21,250: current area being tested.

Low-volume gaps:

Between 21,050 and 21,150 – fast move area if price breaks.

b) Liquidity Zones:

Upside:

21,250 (new high, recent wick rejection) – likely stop clusters above.

Downside:

21,000 – last breakout consolidation zone.

20,850 – absorption and prior POC zone.

Absorption Zones:

Significant delta volume activity near 20,850 – signs of large orders being filled.

c) Volume-Based Swing Highs/Lows:

Volume spike reversal high: 21,250 (upper wick + rejection)

Volume spike reversal low: 20,850 (strong bounce)

d) CVD + ADX Indicator Analysis:

Trend Direction: Confirmed uptrend, now showing signs of range-bound behavior post-breakout.

ADX Strength:

ADX > 20, DI+ > DI- earlier = strong uptrend.

Currently flattening, indicating possible transition to range/consolidation.

CVD Confirmation:

Rising CVD during breakout leg, now diverging (sideways/slight dip) = demand exhaustion possible.

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

VAL: 20,850

POC: 20,847.54

Psychological & structural: 21,000

Resistance:

VAH: 21,250

Previous intraday top: 21,243–21,250

b) Gann-Based Levels:

Swing High: 21,250

Swing Low: 20,084

Key retracement levels (from 20,084 to 21,250):

1/2: 20,667

1/3: 20,472

2/3: 20,889

3. Chart Patterns & Market Structure

a) Trend:

Bullish overall, transitioning into range-bound consolidation at the top.

b) Notable Patterns:

Channel/Wedge forming above 21,000 with downside risk to mid-level support.

Potential double top near 21,250 with divergence in CVD.

Volume gap retest likely if price slips below 21,100.

4. Trade Setup & Risk Management

a) Bullish Entry (If CVD + ADX confirm uptrend continuation):

Entry Zone: 21,000–21,030 (retest support + consolidation base)

Targets:

T1: 21,200

T2: 21,250

Stop-Loss (SL): 20,850

RR: Minimum 1:2

b) Bearish Entry (If CVD + ADX confirm trend reversal):

Entry Zone: 21,240–21,250 (supply zone + divergence)

Target:

T1: 21,000

Stop-Loss (SL): 21,300

RR: Minimum 1:2

c) Position Sizing:

Risk 1–2% of trading capital per trade for optimal capital preservation.