US30 Short Setup: Riding the Retrace to Key Support Levels!
Updated
Since the elections, traditional markets have been climbing to new highs, showcasing strong bullish momentum. However, I’m now eyeing a short opportunity on the Dow Jones (US30) as it retraces to key support zones around 44,400–44,500. This area appears to be a strong support zone, and my plan is to capitalize on the retracement for a potential long setup near the 44,000 price range.
Currently, US30 is trading below the FibCloud, suggesting room for a retrace to the 44,800 level before continuing lower. My strategy here is to profit from the retracement, then re-evaluate for a long trade based on market conditions near the support levels.
Key Levels:
• Support Zone: 44,300–44,500
• Resistance Zone: 44,800
• Take Profit: 44,440
• Stop Loss: Above 45,100
Market Outlook:
With tomorrow being a U.S. bank holiday, volume may vary significantly. I’ll closely monitor price action and market reactions for further confirmation. This trade aligns with the broader market behavior while taking advantage of shorter-term retracements.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Currently, US30 is trading below the FibCloud, suggesting room for a retrace to the 44,800 level before continuing lower. My strategy here is to profit from the retracement, then re-evaluate for a long trade based on market conditions near the support levels.
Key Levels:
• Support Zone: 44,300–44,500
• Resistance Zone: 44,800
• Take Profit: 44,440
• Stop Loss: Above 45,100
Market Outlook:
With tomorrow being a U.S. bank holiday, volume may vary significantly. I’ll closely monitor price action and market reactions for further confirmation. This trade aligns with the broader market behavior while taking advantage of shorter-term retracements.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Note
Our US30 trade is currently in profit as the price forms a potential double bottom pattern. This critical formation could indicate a reversal or continuation of the current trend. At the same time, the 45K price area has shown rejection, which is a crucial level to monitor.
For now, my primary focus is on how the price reacts around these levels. A close below 44,750 would provide me with more confidence to reduce risk and potentially manage my stop-loss more aggressively. Until then, I’m letting the trade run to observe if the momentum aligns with my expectations. Pay yourself and enjoy the trading week!
Trade active
The trade is currently running in profit. At the price level of 44,600, I closed 80% of the position, effectively making it a risk-free trade. It has been 5 days since the position was opened, and the price action did not align with my initial criteria, prompting me to take profits earlier than planned. The purpose of trading is to secure profits rather than risk giving them back due to static stop-loss or take-profit targets. By adapting to the market conditions, I was able to take advantage of what the market provided. Pay yourself consistently, as opportunities arise every day.Trade closed: target reached
Trade closed successfully as the TP was hit. Although the trade took longer than expected, it aligned well with the market setup. This move sets the stage for the upcoming FOMC next week. Pay yourself and prepare for the opportunities ahead!
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