Signs That US 30 Heading Down & Flipping from Bullish to Bearish

18 Feb

Signs That US 30 Heading Down & Flipping from Bullish to Bearish Market Bias

Timeframe: Daily
Market Bias: Bullish Market Bias

1. Price action congested to form a Support & Resistance Zone. A Shooting Star created a Major Pivot High of 38955 that acts as a form of a Resistance Zone. Opposite to that is a Major Pivot Low at 37120 acting as a Support Zone.

2. A very wide Inside Day (of 539 points) showed up to create a pause that can lead to a pause before continuation or reversal of the trend. Price action can move between the high and low of the Inside Day until one of the ends is broken.

3. A bearish candle rejected the high of the Inside Day as a sign that price action will break the low of the Inside Day for a long move downwards.

4. Another sign of a bearish move is that the bearish candle broke through the midline of the long, bullish candle (that serves as Support), so support was broken for a down move by price action.

5. If price action breaks through the Inside Day pattern's low at 38045; the bullish trendline (in green dotted line); and a Support & Resistance Zone, market bias will switch from Bullish to Bearish Market Bias.