US30 uptrend resumes after bullish breakout and aims at $35k
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The US30 daily chart made a bearish ABC (brown) sideways pullback towards the 38.2% Fibonacci retracement level.
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On the 4 hour chart, price action is showing bullish impulsiveness again above the 21 ema zone. The shallow pullback is typical for a wave 4 (gold).
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The bullish breakout above the resistance (dotted orange) lines indicates the uptrend continuation in wave 5 (green).
The Dow Jones Index (US30) is back in the uptrend after a lengthy sideways correction.
As mentioned in our previous analysis, the correction turned out to be a wave 4pattern (green) which respected the shallow Fibonacci levels. Let’s analyse what to expect next.
Price charts and technical analysis
The US30 daily chart made a bearish ABC (brown) sideways pullback towards the 38.2% Fibonacci retracement level:
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The pullback completed a wave 4 (green) pattern. The strong bullish push upwards before the correction is a wave 3 (green):
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A strong uptrend was visible with all the moving averages aligned (21 emas above the 144 ema which is above the 233 and 610 ema).
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The bullish breakout above the resistance (dotted orange) lines indicates the uptrend continuation in wave 5 (green).
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The bullish uptrend seems far from over if the current wave 3 (blue) of wave 3 (orange) of waves 3 of higher degrees is correct.
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The next immediate target is the $35,000 round level.
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A deeper pullback could indicate a warning sign (orange pause button) or invalidate the uptrend (red stop button).
On the 4 hour chart, price action is showing bullish impulsiveness again above the 21 ema zone:
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The shallow pullback is typical for a wave 4 (gold).
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The current bullish swing is probably a wave 5 (gold) of wave 3 (brown).
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After the wave 5 (gold) finishes, there should be one more pullback in wave 4 (brown).
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The previous wave 4 (gold) should now act as a support zone (green box).
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A break below the support trend line (green) places the uptrend on hold (yellow button). A deep breakout invalidates it (red button).
The analysis has been done with the ecs.SWAT method and ebook.
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