US30: A Clear Bearish Pattern Offers Good Sell Opportunities

Last week, US30 has failed to break its April high and formed a double top. It is followed by a sharp price drop breaking the neckline of the double top. This movement is very similar with the scenario back in February, where the price formed a double top, followed by a sharp bearish impulse breaking the neckline. The price eventually retraced back to the neckline area, retested, and then continued its bearish trend. US30 has been in a bearish trend since the beginning of 2022, with price making lower lows and lower highs. Therefore, with recent sharp bearish movement, this is a great indication of bearish continuation.

Entry Criteria:
Currently, the price is in the bearish impulse stage. Therefore, there is no immediate trading action for us to take now. Our plan is to wait for the price to retrace back to the neckline area (34100~34400), watch the price consolidates on lower time frame charts and then enter sell positions.