US30 Bearish M-Pattern Setup for Next Week Overview: Potential M-Pattern (Double Top) Formation
Analyzing the US30 4H chart, we might see a bearish M-pattern develop next week.
Here’s why:
🔹 Price Action: Rejection near the 0.786 - 0.886 Fibonacci zone suggests a potential reversal.
🔹 Bollinger Bands 📊: Price hit the upper band and is contracting, signaling a potential downside move.
🔹 RSI 📉: Falling from overbought and heading toward 40, confirming bearish momentum.
🔹 MACD ⚡: Bearish crossover happening, with the histogram turning red—momentum is shifting down.
🔹 Fundamental Catalyst: Next week’s economic events:
CPI Data (Tuesday) 🏦
Retail Sales (Thursday) 🛍️
Unemployment Claims (Thursday) 📊If inflation remains high, the Fed could maintain a hawkish stance, further weighing on US30.
🔥 Bearish Trade Plan 🔥
🔢 Entry Zone: 44,600 - 44,750 (Watch for rejection)
🔢 Confirmation:
✅ Bearish engulfing candle 🔥
✅ RSI below 50
✅ MACD maintaining bearish momentum🎯 Take Profit Levels:
TP1: 44,350 (0.618 Fib Level)
TP2: 43,950 (0.5 Fib Level)
TP3: 43,075 (0.382 Fib Level - Strong Demand Zone)
🚨 Stop Loss: Above 44,900 to protect against false breakouts ⚠
💸 Risk-Reward: Aim for 1:2 or better
Final Thoughts 🤔
If the M-pattern plays out, expect a bearish move next week. However, CPI data will be a key factor—stay flexible and manage risk!
🚀 Trade smart & stay disciplined! 🚀
Do not risk more than 1% of your account.
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Regards,
Nozuk
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