US30: Key support breakdown signals potential sell opportunity

1. Current Market Overview 🌐

The DJI index is approaching a significant resistance zone where selling pressure is expected to be strong. The price is currently consolidating and moving sideways around this area, preparing for a major move.


2. Technical Signals and Momentum Indicators 📊

• Momentum indicators such as MFI, RSI, and Stochastic have all entered the oversold territory, while also showing signs of price compression (consolidation), indicating the market is waiting for the next breakout.
  
• The strong resistance zone and the Overbought/Overextended (OB/OS) signals suggest that buying pressure is weakening, which is favorable for sellers.
  

3. Sell Scenario on Key Support Breakdown 🔻

• If the price breaks below the important Key Support level shown on the chart, this will confirm the beginning of a downtrend.
  
• Traders can consider opening sell positions as soon as the breakout occurs to take advantage of the downward momentum.
  
• The price target is expected to move toward lower support zones where buying interest may emerge to cause a price correction.
  

4. Risk Management ⚠️

• Place stop-loss orders above the resistance zone or the nearest recent highs to protect against unexpected market moves.
  
• Adjust your position size according to your risk tolerance.
  

5. Conclusion 🔑

• The sell setup on US30 is very clear with a strong resistance zone and momentum signals indicating a potential upcoming downtrend.
  
• Main scenario: Breaking the Key Support will trigger a strong decline, providing a profitable trading opportunity for sellers.
  
• Wait for a confirmed support break before entering the trade to ensure safety and effectiveness.
  

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Harry Andrew @ ZuperView