I believe US30 is heading lower for numerous reasons:
- It is really hard to deduce anything from price action on the 3 month and monthly timeframe.
- However, price on the weekly did hit a major liquidity level at 37,250 and rejected it with a lot of bullish orders.
- 40,750 is a liquidity level that has price has failed to close above in two consecutive weeks.
- Moreover, the two previous weeks, price has rejected 40,750 by forming a lower low the next week, which indicates that price is bearish.
- Last week, we saw a bearish candlestick closure on the weekly, which indicates that there is not enough momentum/buy orders for price to go higher.
- Hence, the weekly timeframe is bearish
- The daily timeframe confirms the weekly bias with a number of confluences.
- First of all, we see that price took a lot of buy orders at 37,250 and formed a double bottom.
- Price peaked at 40,750 and the level has been rejected twice with a double top.
-What confirms my bearish bias is that price is that we saw a candlestick closure below 39,560 (this is a region where we see a daily body closure).
- On the daily, price is hence bearish and the next liquidity points are at 38,250 and at 37,500.
- I believe that price is headed to those regions
- On the 4 hour timeframe, we see that price has already formed a textbook sell setup.
- Price collected sell orders at 40,000 on Thursday.
- Price then retraced from the 39,000 level and collected more sell orders at 39,400.
- My 4H take profit is at 38,650.
- Until then, my job is to monitor whether price will fail to reach that target and collect more sell orders at 39,400 or at 39,000.
- It is really hard to deduce anything from price action on the 3 month and monthly timeframe.
- However, price on the weekly did hit a major liquidity level at 37,250 and rejected it with a lot of bullish orders.
- 40,750 is a liquidity level that has price has failed to close above in two consecutive weeks.
- Moreover, the two previous weeks, price has rejected 40,750 by forming a lower low the next week, which indicates that price is bearish.
- Last week, we saw a bearish candlestick closure on the weekly, which indicates that there is not enough momentum/buy orders for price to go higher.
- Hence, the weekly timeframe is bearish
- The daily timeframe confirms the weekly bias with a number of confluences.
- First of all, we see that price took a lot of buy orders at 37,250 and formed a double bottom.
- Price peaked at 40,750 and the level has been rejected twice with a double top.
-What confirms my bearish bias is that price is that we saw a candlestick closure below 39,560 (this is a region where we see a daily body closure).
- On the daily, price is hence bearish and the next liquidity points are at 38,250 and at 37,500.
- I believe that price is headed to those regions
- On the 4 hour timeframe, we see that price has already formed a textbook sell setup.
- Price collected sell orders at 40,000 on Thursday.
- Price then retraced from the 39,000 level and collected more sell orders at 39,400.
- My 4H take profit is at 38,650.
- Until then, my job is to monitor whether price will fail to reach that target and collect more sell orders at 39,400 or at 39,000.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.