US 30 Experiences Market Structure Adjustment

Market Analysis – December 24

The US 30 index has broken below its previous significant higher swing low on the daily chart, signaling a potential shift in market direction. This downturn has resulted in a 6.53% loss since reaching the swing high of 45,050.0.

Key Levels for US 30

Demand Levels: 42,357.0, 40,915.0, 39,525.0
Resistance Levels: 45,056.0, 46,000.0, 47,000.0

US 30 Long-Term Trend: Bullish

On the daily chart, the US 30 exhibited sideways price action with small-bodied candles from late November into December, indicating fading bullish momentum. This period of consolidation was followed by consecutive bearish candles driving the price toward the key support at 42,357.0.

A sharp decline on December 18 led to a notable 3.6% loss in a single day, reflecting significant bearish pressure. The price action halted at the 42,357.0 support level, which aligns with an unmitigated bullish order block.

Currently, the Stochastic oscillator signals oversold conditions at this level, prompting the emergence of bullish candles after several days of bearish dominance. Forex signals have highlighted this key support zone as a critical area for traders to monitor potential bullish reversals.

US 30 Short-Term Trend: Bearish

On the 4-hour chart, the price is retracing following a sharp expansion from 43,450.0 to 42,357.0, leaving a fair value gap in its wake. A potential double break of structure on the daily timeframe is anticipated to confirm a sustained downward trend.
Aggressive traders may consider initiating short positions based on the single break of structure. However, while early entry offers potential rewards, it carries reduced confirmation. Cautious traders may prefer to await a clearer double-break confirmation before committing to bearish positions.

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