US 30 daily time frame US30 (Dow Jones) Daily Chart Analysis โ Bearish Breakdown Ahead?
Market Structure & Trend Analysis:
The chart shows a Head and Shoulders (H&S) pattern, which is a bearish reversal formation.
Neckline break confirmed, suggesting further downside movement.
The large blue arrow points to the next key support area near 38,731, representing a potential drop of about -9.51%.
Key Levels to Watch:
Resistance: 42,500 - 43,000 (previous support turned resistance).
Support: 38,731 (historical demand zone & target from the H&S breakdown).
RSI & Volume Analysis:
RSI at 36.82, nearing oversold territory but still has room for further downside.
Volume increased on the breakdown, confirming selling pressure.
Trade Considerations:
๐ Bearish Scenario: If price stays below the broken trendline, we could see a continuation towards 38,731.
๐ Bullish Scenario: If price reclaims 43,000, the bearish pattern could be invalidated.
โ ๏ธ Wait for Retest: A potential retest of the neckline (around 42,500) before further decline.