IWM Short1. Broader Market Structure 📉
1.1 Change of Character (CHoCH)
Occurred near the top (~226.70), breaking the prior higher low—signaling a shift from bullish to bearish momentum.
1.2 Break of Structure (BOS)
Confirmed by a move below that level, validating the bearish change and underlining a downtrend in progress.
2. Supply & Demand Zones
2.1 Demand Zones (Support)
Price zones where buyers have previously stepped in, marking potential reversal points:
Zone A (~223.00–223.50) – First layer of support; price tested this zone after the BOS.
Zone B (~221.80–222.20) – Mid-range demand area with historical buyer activity.
Zone C (~220.00–220.50) – Deeper support zone; last line before structural lows.
Key Takeaway: These zones represent probable stops for a short-term pullback and are ideal for long-entry decisions.
2.2 Supply Zone (Resistance)
~226.70–226.75 – Located at the level where BOS occurred; acts as near-term resistance where sellers may reassert control.
3. Price Action Inside the Bordered Area
Current Price (~224.55): Hovering between the supply and first demand zone.
Expected Movement:
A pullback into Zone A (~223.00–223.50).
If demand holds, look for a bullish reaction—forming a higher low, potentially pushing price back toward 226.70+.
Bearish Risk: A break below Zone A increases downside risk into Zone B or C, reinforcing the bearish structure.
4. Momentum & Structure Outlook
Bullish Scenario: A bounce from demand with structure preserved (~higher low) could lead to short-term upside into resistance.
Bearish Scenario: A drop below the bordered demand zone would confirm continuation of the downtrend.
Watch: Price structure around the 224–223 area and reversal cues (e.g., rejection candles, volume spikes).
