The US 30 market is currently experiencing a retracement phase, where the recent price ascent has paused for a pullback. The market has dipped into the 78.6% Fibonacci retracement level, putting the price in an optimal zone for a potential bullish resumption.
The price action of the US 30 market is defined by a steep bullish channel. A test of the resistance border of this channel at 43313.0 coinciding with an overbought Stochastic indicator, led to a pullback. The price has dipped into an area of inefficiency, marked by a fair value gap at 42320.0.
The pullback has reached the 78.6% Fibonacci retracement level, a region commonly utilized for optimal trade entries in the direction of the trend to increase risk to reward ratio. The Stochastic indicator shows readiness for a bullish resumption, even as the market resides in a discount zone.
US 30 Short-term Trend: Bearish
The test of the demand zone, as well as the supporting border of the bullish channel, provides additional bullish confluence. It is crucial to watch for a bullish structural shift to capitalize on the current long trend. The recent dip into the discount level, coupled with technical indicators, signals a potential continuation of the bullish momentum, which can be useful for forex signals.
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