Another Breakout is Needed to Confirm Further Bear Continuation
Previous US30 Chart Update:
Last week, US30 has broken the neckline of its double top pattern, falling to a support level of 33400. As we anticipated, the price retraced back to retest the neckline area and then continued its bearish trend down to 33200 level. Now, the price is moving in a horizontal channel.
Although we are bearish, a breakout to lower side from the current consolidation channel is needed for us to confirm further bearish continuation. The recent price movement is very similar with the movement back in early February, if not identical. In February, the price first brokeout from its double top pattern and then completed retracement and continued heading south. The price then formed a consolidation range but eventually broke down lower. Therefore, based on the historical price movement sequence, current price still has rooms to drop lower. But first, we still need to see a breakout before we can continue to enter sell positions.
Last week, US30 has broken the neckline of its double top pattern, falling to a support level of 33400. As we anticipated, the price retraced back to retest the neckline area and then continued its bearish trend down to 33200 level. Now, the price is moving in a horizontal channel.
Although we are bearish, a breakout to lower side from the current consolidation channel is needed for us to confirm further bearish continuation. The recent price movement is very similar with the movement back in early February, if not identical. In February, the price first brokeout from its double top pattern and then completed retracement and continued heading south. The price then formed a consolidation range but eventually broke down lower. Therefore, based on the historical price movement sequence, current price still has rooms to drop lower. But first, we still need to see a breakout before we can continue to enter sell positions.
