US30 Weekly Analysis - Potential Trading Setup
Technical Outlook — 21 April 2025
Current Market Condition:
US30 on the weekly timeframe is trading within a long-term ascending channel. Price recently experienced a sharp correction, breaking below the middle of the channel and is now testing a key support zone.
Potential Trading Setup:
Potential Reversal/Long Setup (Primary Scenario):
Entry: Look for strong bullish reversal signals within the current support zone (around 37,500 - 38,500). This could include bullish candlestick patterns on the weekly or daily timeframe, coupled with the Stochastic indicator showing a bullish divergence or crossing up from oversold territory.
Stop Loss: Place a stop loss below the low of the reversal signal or below the lower boundary of the support zone (below 37,500).
Take Profit Targets:
TP1: The middle of the ascending channel (around 40,500 - 41,000).
TP2: The upper trendline of the ascending channel (currently around 44,000 - 45,000, and rising over time).
Bearish Continuation Setup (Secondary Scenario):
Entry: If bullish reversal signals fail to materialize and the price breaks decisively below the current support zone (below 37,500), look for short entry opportunities. The Stochastic indicator confirming downward momentum would add confluence to this setup.
Stop Loss: Place a stop loss above the high of the breakdown candle or above the broken support zone.
Take Profit Targets:
TP1: The next significant support level around 34,000 - 35,000.
TP2: The lower boundary of the ascending channel (currently around 32,000 - 33,000, and rising over time).
Important Considerations:
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Disclaimer: This content is intended for educational purposes only and does not constitute financial advice.
Technical Outlook — 21 April 2025
Current Market Condition:
US30 on the weekly timeframe is trading within a long-term ascending channel. Price recently experienced a sharp correction, breaking below the middle of the channel and is now testing a key support zone.
Potential Trading Setup:
Potential Reversal/Long Setup (Primary Scenario):
Entry: Look for strong bullish reversal signals within the current support zone (around 37,500 - 38,500). This could include bullish candlestick patterns on the weekly or daily timeframe, coupled with the Stochastic indicator showing a bullish divergence or crossing up from oversold territory.
Stop Loss: Place a stop loss below the low of the reversal signal or below the lower boundary of the support zone (below 37,500).
Take Profit Targets:
TP1: The middle of the ascending channel (around 40,500 - 41,000).
TP2: The upper trendline of the ascending channel (currently around 44,000 - 45,000, and rising over time).
Bearish Continuation Setup (Secondary Scenario):
Entry: If bullish reversal signals fail to materialize and the price breaks decisively below the current support zone (below 37,500), look for short entry opportunities. The Stochastic indicator confirming downward momentum would add confluence to this setup.
Stop Loss: Place a stop loss above the high of the breakdown candle or above the broken support zone.
Take Profit Targets:
TP1: The next significant support level around 34,000 - 35,000.
TP2: The lower boundary of the ascending channel (currently around 32,000 - 33,000, and rising over time).
Important Considerations:
- Weekly Timeframe Significance: Trading setups on the weekly chart require patience and can take time to play out.
- Confirmation is Crucial: Wait for clear confirmation signals, including price action and signals from the Stochastic indicator, before entering any trades.
- Channel Dynamics: The ascending channel trendlines are dynamic and will change over time.
- Risk Management: Employ appropriate position sizing and always use stop-loss orders.
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Disclaimer: This content is intended for educational purposes only and does not constitute financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.