Last week, US30 has arrived at a new low at $31200 level. Therefore, this indicates that the downtrend is still very valid, and we will continue to look for sell entries after a retracement.
From $31200 level, we can spot a bullish engulfing candlestick pattern, which could indicate the start of a retracement. Our area of interest to enter sell positions are at the resistance level of $33200 and $34100. After the price has retraced to those levels, we will look for a consolidation/reversal pattern. We can see that during the previous price retracements, prices all have formed double tops first, and then broke and retested the neckline area before resumed its bearish trend to make a new low. Therefore, we will be looking for a similar scenario during this retracement.
Check out our previous US indices trading ideas below :)
From $31200 level, we can spot a bullish engulfing candlestick pattern, which could indicate the start of a retracement. Our area of interest to enter sell positions are at the resistance level of $33200 and $34100. After the price has retraced to those levels, we will look for a consolidation/reversal pattern. We can see that during the previous price retracements, prices all have formed double tops first, and then broke and retested the neckline area before resumed its bearish trend to make a new low. Therefore, we will be looking for a similar scenario during this retracement.
Check out our previous US indices trading ideas below :)
