Two weeks ago, US30 has broken the neckline of its double top pattern, falling to a support level of 33400. As we anticipated, price retraced back to retest the neckline area and then continued its bearish trend down to 33200 level. Last Friday, price has made a new recent low of 32950 level, which illsutrates that the bearish trend is still very valid.
Currently, we are only looking to enter sell positions from a pullback. Based on the 4 hour-chart, we can spot a descending channel. Therefore, a good swing sell zone will be at the upper area of the channel.
The recent price movement is very similar with the movement back in early February, if not identical. In February, the price first brokeout from its double top pattern and then completed retracement and continued heading south. The price then formed a consolidation range but eventually broke down lower. Therefore, based on the historical price movement sequence, current price still has rooms to drop lower. We expect the price to drop lower to retest the previous low of 32300 level.