The US 30 market recently experienced a significant downturn, dropping nearly 7%. A sudden surge in the volume indicator signaled substantial shorting activity by large market participants. However, the market has since shown resilience, climbing back above the swing high that initially triggered the decline. The focus now shifts to whether the market can overcome a newly established resistance level, which could provide forex signals for traders.
In mid-July, the price action formed a swing high at the resistance of the upper Bollinger Band on the daily chart. This was followed by a failure swing and the formation of a lower high, signaling weakness in the market. Subsequently, three large daily candles, known as “three black crows,” drove the price down through a demand zone.
Upon reaching the 38,387.0 level, the MACD (Moving Average Convergence and Divergence) red histogram bars began to shorten, indicating a decline in bearish momentum. The MACD eventually turned positive, confirming the start of a price recovery. The market regained its bullish stance after pushing above the swing high of 41,242.0.
US 30 Short-Term Trend: Bullish
After the market hit the resistance level of 41,414.0, a pullback occurred, retreating into a bearish order block on the daily chart. However, a bullish trend has emerged on the four-hour chart following this pullback. A breakout above the current resistance level of 41,414.0 is anticipated, potentially leading to further gains and more forex signals for traders to act upon.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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