US30 - Potential Short
Key Observations:
1. Fibonacci Levels:
- The chart displays a Fibonacci retracement with key levels:
- 0.5 (44,065) and 0.382 (43,828) are critical short-term support levels.
- The 0.618 level (44,302) appears to act as resistance.
2. Bollinger Bands:
- The price is near the lower Bollinger Band, which often suggests oversold conditions. However, this doesn't confirm a reversal unless supported by other indicators.
3. RSI:
-The RSI is approaching oversold levels (below 30), indicating potential buyer interest soon. However, the RSI has not yet diverged, suggesting momentum still favors the downside.
4. Trend:
-The overall trend is bearish, with lower highs and lower lows. The recent retracement to 44,302** and rejection indicates the continuation of selling pressure.
Recommendations:
Short-Selling Scenario (Preferred):
- Rationale: The trend remains bearish, and the rejection at 44,302 confirms resistance.
- Entry: Wait for price action near the 44,065level. If it breaks downward and retests, consider selling.
- Take Profit: Aim for the 0.382 level (43,828) or 0.236 level (43,534) as targets.
- Stop Loss: Set a stop above 44,302 to protect against a trend reversal.
Buying Scenario (Riskier):
- Rationale: If the price respects 43,828 or 43,534 and forms bullish candlestick patterns, you could consider a short-term buy for a retracement.
- Entry: Look for a reversal signal at these levels (e.g., hammer or bullish engulfing candle).
- Take Profit: Aim for a move toward 44,065 or 44,302.
- Stop Loss: Set a tight stop just below 43,534
Conclusion:
Currently, the trend is bearish, favoring a sell strategy unless strong reversal signals emerge at key support levels.
Please keep in mind, do not risk more than 1% of your account.
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