Strategy: Short US30 from 44,000 to 42,100 – Weekly Trade Plan
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1. Market Overview & Context US30 (Dow Jones) is recovering but still faces pressure from macroeconomic factors:
U.S. bond yields: The 10-year yield is slightly rising, putting pressure on stocks. Monetary policy: The Fed maintains a cautious stance on rate cuts, limiting strong market rallies. Investor sentiment: Signs of profit-taking after the recent rebound. Given these factors, the strategy of shorting US30 from the 44,000 - 44,484 zone down to 42,100 is highly feasible.
2. Trading Strategy Entry Point: Sell in the 44,000 - 44,484 zone, a key resistance area likely to trigger strong selling pressure. Stop Loss (SL): Above 44,850, as a break above this level could invalidate the short setup. Take Profit (TP): Target 1: 43,664 - 43,765 (Take 50% profit to secure gains). Target 2: 42,100 - 42,132 (Fully close the trade to capitalize on the expected drop). Risk Management: Minimum Risk/Reward (R:R) ratio of 1:3, ensuring an effective trade setup. Use a trailing stop to maximize profits if the price moves in the desired direction.
Alternative Scenarios If US30 breaks above 44,850, the short setup is invalid. Wait for a new confirmation signal. If the price drops quickly to 43,664 before entry, wait for a rebound near 44,000 before shorting again.
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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.