Hello, everybody and welcome to Cybernetics Trading Lab, today we are going to analyse the US30, translating the market information by using a full technical analysis on different time frames, giving you a personal opinion about the next most likely market movement and helping you to spot and manage market opportunities.[/I]
Top Down Technical Analysis: The market as been following a huge descending channel since a while, and just recently we could see a breakout to the upside. Considering the potential double top (which it hasn’t reached yet) and the correctively way it’s actually moving, there is a possibility that the breakout will fail and the price could come back inside the main structure.
When, where and why would we step into the market? The price, in LTF is still moving to the upside, and we would wait the breakout of the double top, studying the price action in that specific zone. In the scenario of reversal impulse following by a breakout of the LTF rising wedge, we would definitely be looking for a short term short trade, following the potential momentum reversal. Don’t forget that overall the impulse is still rising up, and the market after the current breakout, could just spend more time above the resistance marked on the chart, forming a bigger structure for further bullish movement. Always study the price action, react on it without trying to chase the move!
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Sincerely, Cybernetics Trading Lab
DISCLAIMER Please note the views are not investment advice and should be used only for educational purpose.[/I]