The US30 (Dow Jones Industrial Average) is currently exhibiting a bearish trend, having recently broken below a key support level. This breakdown signals potential further downside momentum, indicating a shift in market sentiment from bullish to bearish.
Technical Analysis Summary:
Trend: Bearish
Breakdown Confirmation: Price has closed below the previous support level, confirming a breakdown and potential trend continuation.
Entry Signal: Entry positions can be considered on a retest of the broken support level, now acting as resistance, or upon confirmation of continued selling pressure.
Profit Targets:
Target 1: The first profit target is set at the next significant support zone, which has historically acted as a demand area.
Target 2: The second profit target is located at a lower, more established support level, providing a deeper downside opportunity if bearish momentum persists.
Risk Management:
Stop-Loss: A stop-loss should be placed above the newly formed resistance level (formerly support) to protect against false breakouts and trend reversals.
Position Sizing: Risk no more than 1–2% of account equity per trade to maintain proper risk management.
Trade Rationale:
The breakdown of the support level on US30 suggests increased selling pressure and the potential for a continuation of the downward trend. By identifying two profit targets, this plan allows for partial profit-taking at the first support level and full exit or trailing stop at the second, depending on price action and market conditions.
Technical Analysis Summary:
Trend: Bearish
Breakdown Confirmation: Price has closed below the previous support level, confirming a breakdown and potential trend continuation.
Entry Signal: Entry positions can be considered on a retest of the broken support level, now acting as resistance, or upon confirmation of continued selling pressure.
Profit Targets:
Target 1: The first profit target is set at the next significant support zone, which has historically acted as a demand area.
Target 2: The second profit target is located at a lower, more established support level, providing a deeper downside opportunity if bearish momentum persists.
Risk Management:
Stop-Loss: A stop-loss should be placed above the newly formed resistance level (formerly support) to protect against false breakouts and trend reversals.
Position Sizing: Risk no more than 1–2% of account equity per trade to maintain proper risk management.
Trade Rationale:
The breakdown of the support level on US30 suggests increased selling pressure and the potential for a continuation of the downward trend. By identifying two profit targets, this plan allows for partial profit-taking at the first support level and full exit or trailing stop at the second, depending on price action and market conditions.
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.