US 30 bulls recently achieved a significant milestone by surpassing the previous high of 41,414.0, marking a strong bullish break of structure and reinforcing the upward trend. However, after this breakout, the price began to fall sharply, suggesting that buyers may be losing steam following the extended rally. This shift has led to a noticeable pullback, signaling a change in market momentum.
The formation of a double top at the start of August led to a sharp decline in price. The Williams Percent Range had already indicated an overbought market when the second top formed. The subsequent price crash disregarded the bullish order block from July 9th. However, as the price reached the lower Bollinger Band, the decline slowed, creating an opportunity for a bullish reversal.
The market gradually recovered, reaching a new all-time high at 41,578.0, just above the previous high of 41,414.0 in July. The small candles before the bullish break of structure indicated weakening momentum. The Williams Percent Range confirmed buyer exhaustion, contributing to the current decline in price.
US 30 Short-Term Trend: Bearish
On the lower timeframe, the price is now crashing toward the demand zone at 40,588.0. Breakout traders may be feeling the effects of this downturn. While waiting for a retest can provide confirmation and is often safer, it also carries the risk of missing out on strong moves where no retest occurs. Traders relying on forex signals may need to adjust their strategies to account for the current market conditions.
Note:Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not for your investing results.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy
