We are concerned with the pre-market price action of the US30, H4 chart. Earlier in the week, we wrote an article suggesting that the rising wedge looked like a bear market rally. Since then, the index has declined markedly.
However, after hitting the 31,000 low yesterday, the index has climbed with small candle ranges. This rally could be the next lower peak as the US30 pauses from the rising wedge breakdown. The previous article gave a measured move of 30,000, and little has happened for us to change this target.
In this regard, we are keeping an eye on the hourly chart. If the trend following indicators break down and the stochastic rolls over, turning bearish (black ellipses), the next leg towards the target may be underway.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.