Watching Market for this week. - US30
Observations:
Price and Bollinger Bands:
The US30 is trading near the upper Bollinger Band, which often signals potential resistance. It may indicate an overbought condition in the short term.
RSI:
The RSI is at 69.70, nearing overbought levels (70+). This suggests the potential for a reversal or a pullback.
MACD:
The MACD is above the signal line, showing bullish momentum, but the histogram seems to be flattening, which could indicate a weakening trend.
Decision Points:
Buy:
Enter a buy position if the price breaks above 44,570 (upper Bollinger Band) with strong volume, confirming bullish momentum.
Sell:
Consider selling if the price rejects the resistance around 44,570 or if the RSI crosses back below 70, signaling a reversal.
Recommendation:
Short-Term Outlook: Watch closely for a rejection or confirmation at the upper Bollinger Band. Based on current indicators, a slight pullback seems more likely.
Place stop-loss orders appropriately to manage risk, regardless of your choice.
Suggested Entry and Exit Levels
Sell Setup:
Entry Point (Short Sell):
If the price rejects 44,570 (upper Bollinger Band) or shows a bearish candle pattern near this resistance.
Take Profit Levels:
Target 1: 44,000 (midpoint of the Bollinger Bands).
Target 2: 43,800 (lower Bollinger Band).
Stop Loss:
Place the stop-loss slightly above 44,600 to avoid getting stopped out by minor volatility above resistance.
Buy Setup:
Entry Point (Buy):
Enter on a breakout above 44,570, with a confirmation candle closing above it (e.g., a strong bullish candle).
Take Profit Levels:
Target 1: 44,700 (short-term resistance based on the next round number).
Target 2: 45,000 (psychological level and likely resistance).
Stop Loss:
Place the stop-loss below 44,400, slightly under recent support, to limit risk.
Additional Risk Management Tips:
Position Size: Adjust based on your risk tolerance (e.g., no more than 1-2% of your account balance per trade).
Volume Confirmation: Use higher volume to confirm breakouts or rejections.
Follow for more ideas.
Price and Bollinger Bands:
The US30 is trading near the upper Bollinger Band, which often signals potential resistance. It may indicate an overbought condition in the short term.
RSI:
The RSI is at 69.70, nearing overbought levels (70+). This suggests the potential for a reversal or a pullback.
MACD:
The MACD is above the signal line, showing bullish momentum, but the histogram seems to be flattening, which could indicate a weakening trend.
Decision Points:
Buy:
Enter a buy position if the price breaks above 44,570 (upper Bollinger Band) with strong volume, confirming bullish momentum.
Sell:
Consider selling if the price rejects the resistance around 44,570 or if the RSI crosses back below 70, signaling a reversal.
Recommendation:
Short-Term Outlook: Watch closely for a rejection or confirmation at the upper Bollinger Band. Based on current indicators, a slight pullback seems more likely.
Place stop-loss orders appropriately to manage risk, regardless of your choice.
Suggested Entry and Exit Levels
Sell Setup:
Entry Point (Short Sell):
If the price rejects 44,570 (upper Bollinger Band) or shows a bearish candle pattern near this resistance.
Take Profit Levels:
Target 1: 44,000 (midpoint of the Bollinger Bands).
Target 2: 43,800 (lower Bollinger Band).
Stop Loss:
Place the stop-loss slightly above 44,600 to avoid getting stopped out by minor volatility above resistance.
Buy Setup:
Entry Point (Buy):
Enter on a breakout above 44,570, with a confirmation candle closing above it (e.g., a strong bullish candle).
Take Profit Levels:
Target 1: 44,700 (short-term resistance based on the next round number).
Target 2: 45,000 (psychological level and likely resistance).
Stop Loss:
Place the stop-loss below 44,400, slightly under recent support, to limit risk.
Additional Risk Management Tips:
Position Size: Adjust based on your risk tolerance (e.g., no more than 1-2% of your account balance per trade).
Volume Confirmation: Use higher volume to confirm breakouts or rejections.
Follow for more ideas.
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.
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.