Dow Jones (US30) — Bullish Momentum, But a Retest AheadUS30 — Preparing for a Retest Before Higher Push
Subtitle: Technical Outlook — 27 June 2025
📈 Current Market Condition
The US30 index has shown strong bullish momentum, breaking above prior resistance around 43,000 and extending towards 43,500. Price is currently above both the 50 EMA (blue) and 200 EMA (red), reflecting a bullish structure. However, the Stochastic indicator signals overbought conditions, suggesting the index may be due for a pullback or consolidation before attempting to break higher into the 44,500–44,750 resistance zone.
🔑 Key Technical Highlights
Structure: Price broke above consolidation zone 42,750–43,000, retesting higher levels.
50 EMA (blue): Positioned near 42,750, acting as dynamic support.
200 EMA (red): Below at 42,200, major trend support.
Stochastic: Overbought — risk of a short-term correction or sideways move before continuation.
Resistance: Major resistance at 44,500–44,750.
Support: Immediate support at 43,000–43,250, deeper at 42,500.
📝 Trade Plan
Bullish Breakout (Long)
Trigger: Retest and hold of 43,000–43,250 zone with bullish confirmation (e.g. bullish engulfing, hammer).
Target: 44,500 / 44,75
Stop-loss: Below 42,900
Bearish Rejection (Short)
Trigger: Strong rejection from 44,500 with bearish reversal pattern.
Target: 43,250 / 42,750
Stop-loss: Above 44,700
Dip Buy
Trigger: Price tests 42,750 (50 EMA) and shows bullish reversal.
Target: 43,500 / 44,500
Stop-loss: Below 42,500
⚠️ Risk Management Note
US30 is trading in extended conditions, so chasing price here carries risk of getting caught in a pullback. Use staggered entries and adjust position size relative to volatility. Watch out for upcoming macroeconomic releases that could trigger sharp moves.
If you found this analysis valuable, kindly consider boosting and following for more updates.
Disclaimer: This content is intended for educational purposes only and does not constitute financial advice.
