This is a countertrend trade. After US30 broke the structure and confirmed a bearish pattern in both daily and weekly TF. We have a bearish engulfing pattern in the weekly TF also.
However I see the possibility of playing a major bullish retracement, especially in case of USA positive elections for Donald Trump, this could create a hype in the stock market and a bullish retrament for us30 up to 75 /786 Fibonacci level.
What are the signs of a possible countertrend trade that the charts are giving me?
TECHNICAL:
- Price came and touched 26000 whole number psychological level
- Price formed a bullish pinbar at that level
- Price oversold and created a disequilibrium in the EMA 200 level
- Stochastic is showing oversold and lines are crossing
FOUNDAMENTAL / PSYCHOLOGICAL:
- Possibility of Trump winning the US elections, this could reinforce US30 temporarily.
My confirmations for entering long:
- I would wait for price to create a HH HL ( bullish pattern) in the 4H chart and play an entry on the retracement.
TARGET: 28000 / 28500 level ( aroun 2000 / 20000 pips accord to your broker) and consequent possibility of taking a swing short afterwards, down to 24000 level
However I see the possibility of playing a major bullish retracement, especially in case of USA positive elections for Donald Trump, this could create a hype in the stock market and a bullish retrament for us30 up to 75 /786 Fibonacci level.
What are the signs of a possible countertrend trade that the charts are giving me?
TECHNICAL:
- Price came and touched 26000 whole number psychological level
- Price formed a bullish pinbar at that level
- Price oversold and created a disequilibrium in the EMA 200 level
- Stochastic is showing oversold and lines are crossing
FOUNDAMENTAL / PSYCHOLOGICAL:
- Possibility of Trump winning the US elections, this could reinforce US30 temporarily.
My confirmations for entering long:
- I would wait for price to create a HH HL ( bullish pattern) in the 4H chart and play an entry on the retracement.
TARGET: 28000 / 28500 level ( aroun 2000 / 20000 pips accord to your broker) and consequent possibility of taking a swing short afterwards, down to 24000 level