Dow Jones 1H Chart Analysis –Bearish Setup from Supply Zone to T
📉 Dow Jones Industrial Average (1H) – Bearish Setup
📊 Chart Pattern:
🔷 Price is moving within a descending channel (🔻 Bearish structure)
📏 EMA (70) = 42,217.4 → acting as dynamic resistance 🧲
📦 Supply Zone (Resistance)
📍 Located between 42,054.3 – 42,086.7
🟦 Zone where sellers dominate → Price rejected this zone ❌
📎 Confluence: Close to the upper channel line + EMA resistance
🟠 Trade Plan (Short Position)
🔹 Entry Point:
📍 42,086.7
🔽 Enter when price rejects the supply zone
🔺 Stop Loss:
📍 42,328.0
🛑 Above the supply zone & trendline = safe buffer
🎯 Target Point:
📍 41,150.0
✅ Near lower channel boundary = logical support zone
📐 Risk to Reward Ratio (RRR)
⚠️ Risk: ~241 points
💰 Reward: ~936 points
🔁 RRR: ~1 : 3.9 🚀
📌 Trend Confirmation
🔻 Lower Highs & Lower Lows ➝ classic downtrend
🧲 EMA above price ➝ down pressure
🔄 Multiple rejections at upper trendline ➝ trend intact
⚠️ Watch Out For
📅 Economic News (e.g., Fed announcements, inflation reports) could break the pattern 🚨
❗ If price closes above supply zone + channel → reconsider short entry
✅ Summary
📉 Bearish bias confirmed
🎯 Target: 41,150.0
📏 Use stop-loss & trade management 🔐
🔥 Strong RRR – worth monitoring!
📊 Chart Pattern:
🔷 Price is moving within a descending channel (🔻 Bearish structure)
📏 EMA (70) = 42,217.4 → acting as dynamic resistance 🧲
📦 Supply Zone (Resistance)
📍 Located between 42,054.3 – 42,086.7
🟦 Zone where sellers dominate → Price rejected this zone ❌
📎 Confluence: Close to the upper channel line + EMA resistance
🟠 Trade Plan (Short Position)
🔹 Entry Point:
📍 42,086.7
🔽 Enter when price rejects the supply zone
🔺 Stop Loss:
📍 42,328.0
🛑 Above the supply zone & trendline = safe buffer
🎯 Target Point:
📍 41,150.0
✅ Near lower channel boundary = logical support zone
📐 Risk to Reward Ratio (RRR)
⚠️ Risk: ~241 points
💰 Reward: ~936 points
🔁 RRR: ~1 : 3.9 🚀
📌 Trend Confirmation
🔻 Lower Highs & Lower Lows ➝ classic downtrend
🧲 EMA above price ➝ down pressure
🔄 Multiple rejections at upper trendline ➝ trend intact
⚠️ Watch Out For
📅 Economic News (e.g., Fed announcements, inflation reports) could break the pattern 🚨
❗ If price closes above supply zone + channel → reconsider short entry
✅ Summary
📉 Bearish bias confirmed
🎯 Target: 41,150.0
📏 Use stop-loss & trade management 🔐
🔥 Strong RRR – worth monitoring!
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join my tellegram channel
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join my refferal broker
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t.me/JaMesGoldFiGhteR786
join my refferal broker
xmglobal.com/referral?token=S4yGyqPUmU9uAANtb_YUoA
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.