4-hr US30: A Potential for 2000-point Rally
A combination of factors, including Trump-era tariffs, the emergence of DeepSeek, and a slowdown in GDP growth, has contributed to the recent pullback in the US30 from its record highs. From a technical standpoint, a Double Top pattern has formed around the 45,000 level—a well-known bearish signal indicating potential further downside movement. A shift in momentum is now evident, and the current dip could extend lower. This outlook is reinforced by the presence of a Death Cross, another historically significant bearish indicator.
To gauge potential support levels, we apply Fibonacci retracement analysis, which suggests that the correction may find a floor near the 43,700 mark. This level coincides with the 38% Fibonacci retracement—a crucial technical zone that has historically provided strong support. With sellers currently in control, a drop below this level is not out of the question. However, we view this area as a potential re-entry point for long positions, aligning with the prevailing broader uptrend. Entering at these lower levels allows us to capitalize on the market’s recovery while optimizing the risk-to-reward ratio.
To gauge potential support levels, we apply Fibonacci retracement analysis, which suggests that the correction may find a floor near the 43,700 mark. This level coincides with the 38% Fibonacci retracement—a crucial technical zone that has historically provided strong support. With sellers currently in control, a drop below this level is not out of the question. However, we view this area as a potential re-entry point for long positions, aligning with the prevailing broader uptrend. Entering at these lower levels allows us to capitalize on the market’s recovery while optimizing the risk-to-reward ratio.
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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.