Short

Updated

US30 painting a beautiful downtrend

US30 Technical Analysis Report

December 16, 2024

Current Market Overview
The US30 (Dow Jones Industrial Average) is currently displaying a significant bearish bias, with multiple timeframe analysis supporting a continuation of the downward momentum. Current price: 43,886

Technical Analysis by Timeframe
Daily Timeframe (HTF)

Confirmed bearish market structure break at 44,392 (December 10, 2024)
Overall Higher Timeframe trend remains bearish
This break serves as a key reference point for the current bearish momentum

4-Hour Timeframe (H4)

Clear downtrend pattern formation
Current price action showing retracement to sweep buy/sell liquidity zones
Price action respecting the downward trendline range
Suggested entry level identified at 43,809

1-Hour Timeframe (H1)

Key resistance level identified at 44,058
Potential for temporary trend interruption if this level is breached
Currently operating within Asian session range boundaries

Key Trading Levels

Entry Target: 43,809
Take Profit 1 (TP1): 43,345
Extended Target (TP2): 42,890 (conditional on market alignment)
Key Resistance: 44,058
Previous Structure Break: 44,392

Volume Analysis

Current phase: Asian session (characterized by lower volume)
Critical observation period: New York session open
Anticipating increased volume and potential trend confirmation during NY hours

Risk Management Considerations

Primary trend remains bearish
Watch for potential temporary reversals at 44,058
Monitor NY session volume for trade confirmation
Consider partial position closure at TP1 (43,345)

Trading Session Context

Currently in Asian trading hours
Key decision point expected at NY session open
Volume expected to increase significantly during NY hours, providing better trade execution opportunities

Trade Strategy Summary
The overall strategy aligns with the bearish bias across multiple timeframes. Entry opportunities are being monitored at 43,809, with a structured approach to take profit levels. The New York session will be crucial for volume confirmation of the anticipated moves.

Note: This analysis is provided for educational purposes only and does not constitute financial advice. All traders should conduct their own research and risk assessment before entering any positions.

Trade closed: target reached

TP 1 Hit.

Hopefully we continue on the downtrend to TP 2 @ 42,892, retest 43,344 to act as the new level of key resistance before continuing fill the fair value gap between 42,711 & 42,394 and finally reaching the liquidity resting at 41,805 as per the chart below.

Alternatively if we do find strong support at 43,364, we can call this move simply a retracement from all time highs of 45,140 which can be seen on the daily chart:

For correlation, this can be supported by the Nasdaq continuing to extend to 22,100

and the S&P 500 also at all time highs of 6,090.

This puts us in an interesting position to place any concrete trades plans on the H4 Timeframe, but what we can do is then look within the lower timeframes for opportunities within this tramline as price is likely to head back up to sweep liquidit resting at 43,620 before making a move to the downside to test support again or may just push outside the tramlines seeking the already mitigated previous week's low.

Either way, it is safe to say that we are out of all our positions and will await to see how price reacts upon NY open for any opportunites.

FXCapitalClub

I hope you’ve had a great day and that your screens were green. 🌟

Happy Trading, and see you next time! 💹✨

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FXCapitalClub

I hope you’ve had a great day and that your screens were green. 🌟

Happy Trading, and see you next time! 💹✨

Also on: