This week, my outlook for US30 leans towards a bearish correction downward. Given the recent strong bullish rally, the diminishing bullish pressure indicates a potential retracement to sweep liquidity and address imbalances below. Subsequently, we'll be on the lookout for buying opportunities around the 37500.0 psychological level.
The ongoing distribution and the change in price character on the hourly timeframe signal readiness for a downward move. Upon reaching our designated (6hr) Point of Interest (POI), I'll await further confirmation through a redistribution on the lower timeframe within the zone before considering a sell setup.
Confluences for US30 Sells are as follows:
- Lots of liquidity to the downside in the form of trend line liquidity and equal lows.
- Price has changed character on the hourly and price has left a clean 6hr Supply Zone.
- Candlestick anatomy showing that bullish pressure is getting exhausted.
- Major imbalances left below as well on the higher time frame that need to be filled.
- Price has been moving very bullish recently and is due for a correction.
- If price wants to continue in a bullish direction I expect for price to tap into the 4hr demand.
P.S. While my current stance is bearish in the short term, my overall outlook for the market remains bullish. This bearish perspective is a temporary one, allowing us to align with the prevailing trend eventually. It's crucial to note that my bearish scenario may be invalidated, considering the presence of equal highs nearby.
HAPPY NEW YEARS TO ALL OF YOU AND HOPE THIS YEAR BRING EVERYONE PROFITABILITY AND CONSISTENCY. LETS CATCH THESE PIPS!
The ongoing distribution and the change in price character on the hourly timeframe signal readiness for a downward move. Upon reaching our designated (6hr) Point of Interest (POI), I'll await further confirmation through a redistribution on the lower timeframe within the zone before considering a sell setup.
Confluences for US30 Sells are as follows:
- Lots of liquidity to the downside in the form of trend line liquidity and equal lows.
- Price has changed character on the hourly and price has left a clean 6hr Supply Zone.
- Candlestick anatomy showing that bullish pressure is getting exhausted.
- Major imbalances left below as well on the higher time frame that need to be filled.
- Price has been moving very bullish recently and is due for a correction.
- If price wants to continue in a bullish direction I expect for price to tap into the 4hr demand.
P.S. While my current stance is bearish in the short term, my overall outlook for the market remains bullish. This bearish perspective is a temporary one, allowing us to align with the prevailing trend eventually. It's crucial to note that my bearish scenario may be invalidated, considering the presence of equal highs nearby.
HAPPY NEW YEARS TO ALL OF YOU AND HOPE THIS YEAR BRING EVERYONE PROFITABILITY AND CONSISTENCY. LETS CATCH THESE PIPS!