US30 looks to be completing a wave 4 pullback in the form of an ABC correction. We are looking for a wave 5 to begin and push down toward the 16000-15000 level. A few things must happen for this set up to remain valid.
1. Wave 4 cannot pull back higher than where wave 1 ended (around 24700). This would invalidate the Elliot wave structure.
2. We need a strong bearish push in order to confirm the end of wave 4 and beginning of wave 5. This is where we can jump on a smaller timeframe for our entry.
3. Price would need to break the yearly low (currently at 18150) in order to fully complete wave 5 for a final target of 15500. Price could hit the yearly low and bounce up to attempt a double bottom, therefore most profits should be taken at this level.
TP 1: 21000
TP 2: 18500 *close most of positions
TP 3: 15500
Keep in mind US30 is highly volatile. Use proper risk management. This set up has a great risk to reward.
I am not a financial advisor. This is not financial advice. This is for educational purposes only.
1. Wave 4 cannot pull back higher than where wave 1 ended (around 24700). This would invalidate the Elliot wave structure.
2. We need a strong bearish push in order to confirm the end of wave 4 and beginning of wave 5. This is where we can jump on a smaller timeframe for our entry.
3. Price would need to break the yearly low (currently at 18150) in order to fully complete wave 5 for a final target of 15500. Price could hit the yearly low and bounce up to attempt a double bottom, therefore most profits should be taken at this level.
TP 1: 21000
TP 2: 18500 *close most of positions
TP 3: 15500
Keep in mind US30 is highly volatile. Use proper risk management. This set up has a great risk to reward.
I am not a financial advisor. This is not financial advice. This is for educational purposes only.