US 30 Forms Double Bottom at Major Support Level

Market Analysis – January 8

The US 30 reached a high of 45,056.0 before buyer exhaustion triggered a decline. This pullback breached the swing low of 43,450.0, eventually hitting the major support level at 42,357.0. At this level, price action formed a double bottom pattern, signaling a bullish reversal and offering renewed optimism for buyers.

US 30 Key Levels

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

US 30 Long-Term Trend: Bullish

The bullish trend for the US 30 began in November 2023, with divergence observed on the RSI (Relative Strength Index). This upward movement has been marked by sharp retracements, with the 100-period Moving Average consistently acting as support during pullbacks. The 200-period Moving Average further validates the broader bullish momentum by trailing behind price action.

The recent pullback to 42,357.0 coincided with the formation of a double bottom, a key bullish reversal pattern. This was supported by a test of the 100-period Moving Average and an oversold signal from the RSI. Together, these factors indicate that the sharp retracement could pave the way for a continuation of the uptrend.

US 30 Short-Term Trend: Bullish

A break below the swing low at 42,000.0 would confirm a double break of structure, potentially signaling a shift toward a downtrend. While lower timeframes currently reflect bearish sentiment, higher timeframes suggest the possibility of recovery, reinforced by the double bottom pattern at the support level.
A bullish reversal remains probable if the support at 42,357.0 holds and the double bottom pattern plays out as expected. Crypto signals may provide further insights into the evolving market dynamics, aiding traders in identifying potential opportunities.

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