US30 Pull back short
Price action has been respecting a key 4-hour trendline. The market recently bounced off this trendline for the third time, reinforcing the significance of this support level. Notably, the price broke through a previous resistance level, but we’ve now seen a Change of Character, signalling a potential bearish shift in momentum.
Given this bearish structure, I anticipate a pullback to retest the recently broken resistance, which should now act as support. This aligns with a potential retracement to the 50% Fibonacci level and a retest of the bottom trendline, both of which present strong confluence zones for a bullish continuation.
For now, the focus is on entering a short-term sell position to capitalize on this expected pullback. In the lower time frames, we’re looking for confirmation to sell the pullback, ideally to a point where price shows signs of rejection at the 50% Fibonacci level or begins to align with the trendline once again.
Given this bearish structure, I anticipate a pullback to retest the recently broken resistance, which should now act as support. This aligns with a potential retracement to the 50% Fibonacci level and a retest of the bottom trendline, both of which present strong confluence zones for a bullish continuation.
For now, the focus is on entering a short-term sell position to capitalize on this expected pullback. In the lower time frames, we’re looking for confirmation to sell the pullback, ideally to a point where price shows signs of rejection at the 50% Fibonacci level or begins to align with the trendline once again.
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