Trading US30 / Dow Jones Industrial Average

Research Notes For 26 to 30 May > https://www.unum.capital/post/r2630may

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For US30, here's a breakdown of the current price action:

• The 7-day trend is indicated as "Strong".

• The 14-day trend is "Bullish".

Comparison:

• Both the short-term (7-day) and slightly longer-term (14-day) trends are indicating bullish sentiment. The 7-day "Strong" trend suggests immediate buying pressure, which is supported by the "Bullish" 14-day trend, indicating sustained upward momentum.

Potential Trading Approach for US30:

• Short Term (Approximately Next 1 to 10 Trading Days): The model notes, "Aggressive Buying But Do Not Chase-Look For Overshoot or Failure To Hold Prior Session Range Highs To Short-Sell Back To The 8-EMA".

  • Approach: Acknowledge the strong buying pressure. However, avoid blindly chasing the price. Instead, look for potential overshoots above prior session range highs that fail to hold, which could present short-sell opportunities back towards the 8-period Exponential Moving Average (EMA).

• Medium Term (Approximately Next 2 to 4 Weeks): The model indicates, "Attempting To Advance Whilst In A Bullish Regime-If It Pulls Back Use The Prior Session Close or 8-EMA As An Accumulation Zone".

  • Approach: The medium-term outlook aligns with the bullish regime. If the price pulls back, consider the prior session close or the 8-EMA as potential areas to accumulate long positions.

• Long Term (Approximately Next 5 to 8 Weeks): The model states, "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity".

  • Approach: The long-term view suggests an ongoing or newly forming upward trend. Despite this, the model reiterates caution about potential failures at prior session range highs, which could still lead to short-term tactical short opportunities even within a longer-term uptrend.

Overall Trading Considerations for US30:

• Consistent bullish sentiment: Both short and medium-term trends are bullish, suggesting upward momentum.

• Short-term caution: Despite the bullishness, be aware of potential short-term reversals if prior session range highs fail to hold, offering tactical short entries.

• Medium-term accumulation: Look for pullback opportunities to add to long positions around the prior session close or the 8-EMA.

• Long-term bullish bias with short-term risks: The long-term trend is up, but the risk of failure at prior highs for short-term pullbacks remains a consideration.

In summary, for US30, the current view is bullish across short to medium terms, with a long-term upward trend also indicated. However, traders should be mindful of potential short-term pullbacks if prior session highs are not sustained, offering tactical short opportunities. Medium-term pullbacks could be buying opportunities within the broader bullish context.