US30 Approaching Key Resistance–Potential Reversal Setup in Play🧠 Chart Overview
Asset: US30 (likely the Dow Jones Industrial Average)
Timeframe: Appears to be 1H or 2H
Indicators:
EMA 50 (Red): 40,119.5
EMA 200 (Blue): 39,897.3
Price at time of chart: Around 40,503
🔍 Key Technical Levels
🔴 Resistance Zone
Range: ~40,750 to 40,850
Price has tested this level multiple times and is currently hovering near it.
The resistance is holding, and no strong breakout has occurred.
🟦 Support / Focus Zone
Range: ~39,200 to 39,600
Marked as the “FOCUS POINT” – likely the expected target on a breakdown.
EMAs Insight:
Price is above both the 50 EMA and 200 EMA, suggesting short-term bullishness.
However, since it’s stalling at resistance, it could flip bearish on rejection.
🧭 Price Action Narrative
The chart suggests a potential fakeout above resistance, followed by a sharp rejection.
The path drawn shows a short-term dip, targeting the FOCUS POINT (support zone).
Rejection at resistance aligns with typical distribution behavior.
📌 Trade Idea (Bearish Bias)
Entry Idea: Short near or just above the resistance level (~40,800)
Target: 39,400 zone
Stop-Loss: Above the resistance level (~40,900+)
Risk/Reward: Favorable if price fails to break above resistance convincingly
📉 Bias: Bearish Reversal
Unless price breaks and closes above resistance with strong momentum, the chart favors a pullback scenario.
