Facts:
- Price pulled back from the resistance at 38700
- US30 is trading below the 100-period moving average
Recommendation:
Trade: Short US30 at market price
Target: 38041, 37560
Stop Loss: 39135
Opinion: American index US30 launched today’s session with an upward correction. However, sellers managed to halt an advance at the key resistance (38700). The price pulled back from the upper limit of the 1:1 structure which is also strengthened by the previous low from 10th of April as well as 23.6% Fibonacci retracement of the recent downward impulse started on 15th of April. According to the Overbalance methodology, as long as the price sits below aforementioned resistance, a downward move looks to be the base case scenario. In addition the index is trading below the 100-period moving average from the M30 interval. We recommend going long US30 at market price with two targets: 38041 and 37560. We also recommend placing stop loss at 39135. Source: xStation5
