US30
Updated
TOP DOWN ANALYSIS ON US30
- A THREAD
Note
On the daily timeframe, market is gradually bullish and price is actually resting near a confirmed resistance level accompanied by an obvious fake out and rejection.
Due to the fact that the market is also at the resistance of an ascending channel, it is assumed that sellers should be able to push price down again to an obvious support level so the two marked arrows are my first and second targets assuming I was to short the market presently.
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Let us check for other confirmations in lower timeframes.Note
Moving to the 4 hour timeframe, we have seen a marked out head and shoulders (not textbook definition) still on the resistance of support of the daily with its supposed neckline while price is kind of consolidating.
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I know there are obviously more bearish confirmations but do not rush to short the market. Price being at resistance does not necessarily mean a sell. Resistance levels can always be broken. With that being said, what am I expecting?Note
A: The resistance might be broken and you might have to wait for a pullback towards previous resistance (now support), then you go long.
Note
B: After price has broken the neckline of its head and shoulders, you might want to wait for a little retracement then you short using the dotted channel support lines as first and second targets (if you wish).
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