The US30 (Dow Jones Industrial Average) is showing a bullish outlook based on a confluence of Smart Money Concepts (SMC), price action patterns, and supportive fundamental analysis. From an SMC perspective, the recent price action indicates a clear market structure shift, highlighted by a break of structure (BOS) in early May 2025. This bullish reversal followed a significant liquidity sweep and mitigation around the 37,000 level, where smart money likely accumulated positions. A bullish order block between 40,679 and 41,189 now acts as a strong demand zone, providing a potential launch point for further upward movement. Technically, the chart features a descending wedge breakout and a bullish flag formation—both classical continuation patterns. Price is currently forming higher highs and higher lows, reinforcing the bullish trend.
The trade idea aligns with these observations, suggesting a long entry around the 41,700 to 41,900 range, with a stop loss just below the key demand zone at 40,679. The first take profit is set at 44,472.5, aligning with historical resistance and liquidity targets, offering an approximate risk-to-reward ratio of 1:3. On the fundamental side, the mid-2025 U.S. economic outlook is improving, with inflation showing signs of cooling and the Federal Reserve expected to pause or consider rate cuts. A stable geopolitical climate and strong earnings seasons have further boosted investor confidence, supporting continued bullish momentum in equities. Altogether, this presents a high-probability swing trade opportunity to the upside on the US30 index.
The trade idea aligns with these observations, suggesting a long entry around the 41,700 to 41,900 range, with a stop loss just below the key demand zone at 40,679. The first take profit is set at 44,472.5, aligning with historical resistance and liquidity targets, offering an approximate risk-to-reward ratio of 1:3. On the fundamental side, the mid-2025 U.S. economic outlook is improving, with inflation showing signs of cooling and the Federal Reserve expected to pause or consider rate cuts. A stable geopolitical climate and strong earnings seasons have further boosted investor confidence, supporting continued bullish momentum in equities. Altogether, this presents a high-probability swing trade opportunity to the upside on the US30 index.
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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.