US30 / Pivot Point Analysis for Bullish or Bearish MovesUS30 Analysis: Key Levels and Potential Scenarios
The US30 (Dow Jones Index) has been navigating near significant levels after a strong bullish breakout, marked by a breakaway gap and a test of its previous All-Time High (ATH) at 45,097. As the price consolidates, traders are closely watching for signs of either a bullish continuation or a bearish correction. Below, we delve into the key levels and outline both bullish and bearish scenarios.
Key Levels to Watch
1. Resistance Levels:
- 45,198.3: Critical resistance and the upper boundary for the current bullish momentum.
- 45,097: The ATH from November, which serves as a psychological level for bulls.
2. Support Levels:
- 44,755: Immediate support to watch in case of a bearish pullback.
- 44,405: Key support zone to hold the price within a bullish structure.
- 43,900: Major support level coinciding with earlier consolidation and the breakaway gap zone.
Bullish Scenario
The bullish outlook remains strong as long as the price holds above the key support at 44,756.
- Sustained trading above this level could pave the way for a retest of the 45,198
resistance.
- A break above 45,198.3 would likely trigger a continuation toward the ATH of 45,097, with the potential for further upside into uncharted territory.
- Traders should watch for a retest of the breakaway gap zone as confirmation of bullish strength.
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Bearish Scenario
A bearish reversal may come into play if the price fails to hold above 4,7560
- A sustained move below this level could open the door for a correction targeting 44,404
and eventually 44,272.
- If the bearish momentum intensifies, the next major support lies at 3,900, a critical zone that aligns with the breakaway gap.
- A breach of 43,900 would signal a deeper bearish trend, with potential for further declines toward the next lower support zones.
Key Levels
Pivot Point: 44920
Resistance Levels: 45100, 45,198, 45,400
Support Levels: 44755, 44,404, 44,272
Conclusion
The US30 is trading near critical levels, and its next move depends on whether the bulls can maintain control or if bearish pressures lead to a deeper correction. Traders should monitor the 44,756.3 support and 45,198.3 resistance for confirmation of the next directional bias.