US30 A giant Inside Day pattern formed on the Hourly. That means a market pause with no clear direction for the candles to consolidate until a breakout, which can be from the pattern's high of 47,948 or low of 47,858 (shown as two orange lines).
If a true breakout from the high of the Inside Day at 47,948, it would be within a two-tiered S&R Zone to break through and head for the Swing High of 47,998 to breach with a candle close past that level to rise more. A Bearish Trendline (in red dotted line) is acting as a strong "rope" of Resistance. If one or more of these Resistance levels can't be breached, then back down again.
US30 Did Not Expect That Move Going Up: I thought the market would drop more to form the giant W-shaped pattern, then go up.
So switching to the Daily, the current candle still forming is nearing the Bullish Trendline (in green dotted line) and still moving within the new S&R Zone. If the bulls tether to the trendline, this would make it the 10th Daily candle to do so.
We'll see if the bears show up to drop down more towards the current mean reversion price of 47,377 or rise above the S&R Zone towards the Major Pivot High of 48,107 from a previous Spinning Top (circled red arrow) to get near or breach to rise above that level.
US30 Looking at the Hourly, it is in Bearish (directional) Market Bias. The bears are dropping down from a two-tired S&R Zone with a Bearish Harami and headed for the Inside Day pattern's low of 47,601 (shown as an orange line) for a breakout. If a true breakout, then they can drop down more, but also needs to breach the Swing Low of 47,601 and the S&R Zone, right below that.
*Take Profits to the Downside: 47,524 - Low of Inside Day for a Breakout on the 8-Hour Chart 47,520 - New Swing Low on the 4-Hour Chart, Based on ATR 47,363 - New Swing Low on the Daily Chart, Based on ATR 47,354 - New Swing Low on the 8-Hour Chart, Based on ATR
US30 A giant M-shaped pattern is forming its last leg on the 8-Hour timeframe (as outlined below).
The bears have dropped below the S&R Zone, shifting it from being used as Support to Resistance.
A continued move to the downside can be towards the low of the Inside Day at 47,524 (shown as an orange line) for a breakout. If a true breakout, then the bears can cross the the Bullish Trendline (in green dotted line) to flip the market bias from neutral to bearish and toward 47,330.
US30 Another Wave on the Horizon: The 4-Hour just printed a Double Inside Day, so we'll see a BIG move coming.
*Side Note: An example of a Double Inside Day can be seen on the chart below from December 3rd. Four hours later, it lead to a strong bullish thrust of 453 ticks (points) that's highlighted in yellow.
US30 Last Call for This Session: On the Hourly, an Inside Day pattern formed to create a market pause. We'll see consolidation within this until a breakout from either the pattern's high of 47,782 or low of 47,601 (shown as two orange lines).
Also, look at the candles on the Hourly chart below. They are moving between two S&R Zones, above and below, so a breakout from both the Inside Day and the Zones needs to happen for true direction.
US30 Switching to the Daily, it is still in Neutral (directional) Market Bias from the bearish candle being tethered to the Bullish Trendline (in green dotted line).
There's still about 3 hours until the Daily's candle close. A continued move down can be towards the current mean reversion price of around 47,313, that can happen today or tomorrow. No matter what day, that's a potential take profit projection.
If the bulls show up tomorrow to counter this bearish move, then we may see another candle tethered to the trendline. So far, there have been 9 candles that are along the trendline, continuing to put the Daily in Neutral Market Bias.
*Side Note: This long bearish drop is from the M-shaped pattern that is the last leg (of the 4-Hour and Hourly timeframes) and is also the result of a BIG move from the Double Inside Day for both timeframes that was foretold earlier.
US30 A giant Inside Day pattern formed on the Hourly. That means a market pause with no clear direction for the candles to consolidate until a breakout, which can be from the pattern's high of 47,948 or low of 47,858 (shown as two orange lines).
