Long term bearish on US30USD
Updated
In order for this 10 year long bull run to continue, the market needs to see a strong break of 27,000 in the Dow Jones Industrial Average. The last two times we approached 27,000 we reached 26,670.2 and then a higher high of 26,939.2. After creating this high, it has been in a downtrend ever since.
Technicals:
I have a trendline drawn from the October 3rd, 2018 high down to the first touch on February 25th, 2019 with a couple more touches following after that. The trendline acts as resistance and US30 has been unable to break through the trendline for the past 4 weeks. We know this because on the Weekly timeframe, after the first touch there are 3 more candles and 2 of them test the trendline but can't break it. This is simple support and resistance trading. I would look to get in after a break and retest of the 25,206 level and ride it down.
If we zoom out, we can see that the market created a pretty strong double top right under the strong resistance of 27,000. It seems that the new resistance is in the 25800-26200 area. If US30 maintains a position below this zone, then we can expect further bearish movement. I have my targets at the blue lines if a bearish scenario is to play out. We could see the unraveling of the stock market right before our eyes. Make sure you are prepared.
Technicals:
I have a trendline drawn from the October 3rd, 2018 high down to the first touch on February 25th, 2019 with a couple more touches following after that. The trendline acts as resistance and US30 has been unable to break through the trendline for the past 4 weeks. We know this because on the Weekly timeframe, after the first touch there are 3 more candles and 2 of them test the trendline but can't break it. This is simple support and resistance trading. I would look to get in after a break and retest of the 25,206 level and ride it down.
If we zoom out, we can see that the market created a pretty strong double top right under the strong resistance of 27,000. It seems that the new resistance is in the 25800-26200 area. If US30 maintains a position below this zone, then we can expect further bearish movement. I have my targets at the blue lines if a bearish scenario is to play out. We could see the unraveling of the stock market right before our eyes. Make sure you are prepared.
Note
The Dow dropped over 400 points late on Friday, despite the Fed remaining dovish on their stance earlier in the week. While many analysts are crying "Take your money out!", others still remain bullish. Me personally, I think it's time for a reset.Note
still consolidating inside a zone
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