This chart represents a bullish buy setup for US30 (Dow Jones Industrial Average Index) on the daily timeframe (1D). The analysis is based on technical tools such as trendlines, Fibonacci retracements, support/resistance zones, and projected price movements. Here’s a breakdown of the setup:
1. Key Support Zone (Green Highlighted Area)
The price is currently sitting inside a strong demand zone around 40,000 - 41,000.
This area aligns with a previous structural support level, where buyers have historically entered the market.
The price has tested this level multiple times and bounced, indicating strong demand.
2. Trendline Support (Yellow Lines)
The chart has two key yellow trendlines:
Long-term uptrend support extending from late 2023, confirming an overall bullish bias.
Shorter descending trendline that price recently broke or is testing, indicating a potential reversal.
The price is rebounding from these trendlines, suggesting a continuation of the long-term uptrend.
3. Fibonacci Retracement Levels
The 38.2% Fibonacci retracement level (~40,212.54) is acting as support.
Historically, this level is a common retracement point where price reverses in an uptrend.
Price has bounced off this Fibonacci level, confirming buying pressure.
4. Projected Price Targets (Blue Arrows)
Three potential upside targets are plotted:
First Target: 42,065.64 (23.6% Fibonacci level) – A conservative target, which aligns with previous resistance.
Second Target: 45,091.30 – Previous all-time high, marked by the blue dotted line.
Third Target: 48,000+ (Extension Move) – A major bullish breakout projection.
The percentage and point gains for each target are displayed, with a full move from current levels to 48,000+ potentially yielding +18.55%.
5. Volume Analysis
Volume bars indicate increasing activity, which can signal stronger buying momentum.
A breakout above 42,000 with rising volume would further confirm the bullish outlook.
6. Trade Execution Plan
Entry: Near 41,000 (current price), as price finds support.
Stop-loss: Below 40,000 (below the Fibonacci 38.2% level).
Take-Profit: Based on risk tolerance:
Short-term: 42,065
Mid-term: 45,091
Long-term: 48,000+
Conclusion
This setup suggests a bullish reversal from a strong demand zone with confluence from trendline support, Fibonacci retracement, and historical price action. The price action and volume dynamics indicate a potential rally towards previous highs and beyond, making this a favorable buy trade if conditions remain intact.
1. Key Support Zone (Green Highlighted Area)
The price is currently sitting inside a strong demand zone around 40,000 - 41,000.
This area aligns with a previous structural support level, where buyers have historically entered the market.
The price has tested this level multiple times and bounced, indicating strong demand.
2. Trendline Support (Yellow Lines)
The chart has two key yellow trendlines:
Long-term uptrend support extending from late 2023, confirming an overall bullish bias.
Shorter descending trendline that price recently broke or is testing, indicating a potential reversal.
The price is rebounding from these trendlines, suggesting a continuation of the long-term uptrend.
3. Fibonacci Retracement Levels
The 38.2% Fibonacci retracement level (~40,212.54) is acting as support.
Historically, this level is a common retracement point where price reverses in an uptrend.
Price has bounced off this Fibonacci level, confirming buying pressure.
4. Projected Price Targets (Blue Arrows)
Three potential upside targets are plotted:
First Target: 42,065.64 (23.6% Fibonacci level) – A conservative target, which aligns with previous resistance.
Second Target: 45,091.30 – Previous all-time high, marked by the blue dotted line.
Third Target: 48,000+ (Extension Move) – A major bullish breakout projection.
The percentage and point gains for each target are displayed, with a full move from current levels to 48,000+ potentially yielding +18.55%.
5. Volume Analysis
Volume bars indicate increasing activity, which can signal stronger buying momentum.
A breakout above 42,000 with rising volume would further confirm the bullish outlook.
6. Trade Execution Plan
Entry: Near 41,000 (current price), as price finds support.
Stop-loss: Below 40,000 (below the Fibonacci 38.2% level).
Take-Profit: Based on risk tolerance:
Short-term: 42,065
Mid-term: 45,091
Long-term: 48,000+
Conclusion
This setup suggests a bullish reversal from a strong demand zone with confluence from trendline support, Fibonacci retracement, and historical price action. The price action and volume dynamics indicate a potential rally towards previous highs and beyond, making this a favorable buy trade if conditions remain intact.
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For Training visit.
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Related publications
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.