Performance of the US Market at Close:

The US stock markets experienced a collective rise at the end of the trading week, supported by a noticeable drop in Brent crude prices, which fell by 3.4% due to hopes for easing geopolitical tensions, in addition to the significant momentum created by SpaceX's historic massive IPO on its first trading day.

• Closing Price: 7,431.46 points

• Daily Change: +37.16 points (+0.5%)

• Opening Price: 7,410.85 points

• Session High: 7,456.40 points

• Session Low: 7,363.01 points

• Weekly Performance: The index succeeded in concluding its tenth week of gains over the last 11 weeks.

Technical Analysis and Current Status of the Index

The index formed a positive bullish candle that clearly rebounded from the daily low of 7,363 points to close near the session's highest levels, reflecting the dominance of buyers and a strong influx of liquidity at the end of trading to retest the upper resistance areas.

The overall trend remains bullish in the short and medium term, supported by stability above the main moving averages and successfully breaking through previous resistance levels.

Upcoming Support and Resistance Levels

Resistance Levels

• First Resistance: 7,456.40 (highest peak of the previous session) 
• Second Resistance: 7,481.34 (current supply area) 
• Third Resistance: 7,500.00 (psychological barrier target)

Support Levels

• First Support: 7,369.41 (horizontal and nearby support level) 
• Second Support: 7,343.67 (main support level successfully retested) 
• Third Support: 7,265.93 (lowest peak recorded mid-week)

Expected Scenarios for the Upcoming Period

First Scenario: Continuation of the Uptrend and Breaking the Peaks

A stable breakout above the first resistance at 7,456 points and a quick move to test the strong supply levels between 7,481 and 7,500 points.

If the index remains above 7,500, it opens the door to the major financial institutions' targets, which have raised their expectations for the index towards levels of 8,000 points before the end of the year, supported by strong growth in corporate profits.

Second Scenario: Sideways Movement and Profit Taking

The index entering a natural sideways fluctuation wave (profit-taking) aimed at retesting nearby support levels and relieving pressure on momentum indicators like the RSI. The expected range for the sideways movement will be confined between 7,369 points as support and 7,456 points as resistance.

This scenario is considered healthy for cumulative building and gathering strength before any upcoming rise.

Important Guidelines and Strategy for Traders

Do not buy just because the price is close to the previous peak of 7,456 points. Wait for a 4-hour or daily candle to close above this level to ensure that there is no false breakout.

It is advisable to place a stop-loss order below the 7,340 points with a 1-hour candle close, as breaking this level will immediately negate the current bullish momentum.

Conclusion

As long as the index is trading above the 7,343 - 7,369 area, the advantage remains with buyers, and a breakout above 7,456 with a strong daily candle close is considered a safe entry signal for the next historical target.

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