US30 Buy Or Sell Depending of Price ActionKey Observations:
Downtrend and Fibonacci Retracement:
The chart is in a clear downtrend, indicated by lower highs and lower lows.
A Fibonacci retracement tool is applied to the recent downtrend. The price appears to have retraced to the 50% level (44,062.63) and faced resistance, failing to break above the 61.8% level (44,299.10).
Bollinger Bands:
The price is testing the lower Bollinger Band, which could indicate oversold conditions in the short term.
A potential bounce back to the mean (middle Bollinger Band) could occur unless there’s continued bearish momentum.
Key Levels:
Support Level: Around the 0.382 Fibonacci level (43,828.18), which is acting as a current support.
Resistance Zone: Between the 50% (44,062.63) and 61.8% (44,299.10) Fibonacci levels.
The price is also far from the major resistance level at 44,460.85.
RSI (Relative Strength Index):
RSI appears to be near the oversold region (below 30), suggesting a potential reversal or relief rally in the short term.
MACD:
The MACD histogram is showing bearish momentum, but the bars are becoming smaller, hinting at a possible loss of selling pressure.
Possible Scenarios:
Bullish Case (Relief Rally):
If the price holds above the 0.382 Fibonacci support level (43,828.18), it could bounce back to retest the middle Bollinger Band and possibly the 44,062.63 level.
A break above 44,062.63 could target the 61.8% level (44,299.10).
Bearish Case (Continuation):
If the price breaks below 43,828.18, further downside could target the next major support, likely below 43,700.
The continuation of bearish momentum is supported by the MACD still being below the signal line.
Recommendation:
Short-Term Traders:
Watch for a reaction at the current support level. If the RSI starts to rise and the price bounces off the Bollinger Band, a short-term buy may be possible.
Trend Traders:
Wait for confirmation of a break below the 0.382 level or a rejection at the 50% retracement to follow the downtrend.
Risk Management:
Use stop losses, especially near the Fibonacci levels, as they act as pivot zones. Do not risk more than 1% of your account per trade.