Hi traders, today we’re looking at the US30 daily chart as buyers have set support, but still have resistance to beat to get the trend back on track.
Looking at the current Dow D1 chart, we can see price remains on two trend lines. With the fast to med-term being the main trend at this point. Price has made a two-bar retracement back to the fast trend before yesterday’s fightback reconfirming current support seen at 33,800. This is why we have noted this point as it’s a repeat of the previous price action. You will notice this support came from previous resistance. This pattern was also seen in March. This can also be called a step.
Resistance becoming support is a good sign in a trend. It’s good to see it repeating as it shows price can respect the pattern. That’s not saying this will work on this occasion but it’s a good sign from a buyer point of view.
Dow price today has also started to test the minor downtrend line, but we still see supply and resistance remaining from 34,110 to 34,180. Buyers need to build on yesterday’s move and break this area of resistance to suggest that we may have a continuation in the process. The next step after that will be a test and break of the current all-time high.
If we see resistance hold and price moves back to support caution on the buy-side could be taken as the current retracement has widening bars which can be seen as a small warning unless US30 price breaks higher.
This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.
No comments:
Post a Comment