Dear traders,

Last time I wrote about Dow Jones, I was expecting a correction and it started…

But then the demand zone was strong enough to hold the price and find more fresh buyers and currently we are close to another possible turning point.

Here is what happened last time and I was expecting one of two scenarios to materialize:

The price dipped as expected and had its longest consequential daily losing streak- 10 days in a row!

But then, it found support (The Demand Zone) and bounced back, which is one of the scenarios I was expecting.

The other one was if the price went under the supply zone, then I would have waited for a negative rejection from under the zone and then shorted.

Since this did not happen, I am looking for a new potential setup coming up this or next week.

Dow Jones Trading Analysis 30.01.2025

Today, I am looking for a potential breakout.

The price is very close to a major supply zone.

There is the NFP coming up later today, so I will not be surprised to see the price taking this zone.

And then later, the way the price reacts to this zone is all that matters.

So, here are the two scenarios I am expecting to see:

This is nothing unusual and I am not telling you anything new here.

But what I will be looking for is this secondary reaction that the price exhibits.

Depending on the secondary reaction, I will decide if there is a bullish or a bearish formation and how I will react to it.

The Bullish Scenario

For a bullish scenario to realise, I will be waiting for a rejection candle after a re-test of the supply zone.

This could look something like that:

The re-test would be confirmed by a bullish candlestick like a bullish engulfing, inside bar or an inverted pin bar.

The Bearish Scenario

For a bearish scenario to play out, I will be looking for the following setup:

The re-test should also be confirmed by a bearish candlestick formation.

These could be a bearish engulfing pattern or a pin bar.

Until that happens, let’s wait and see which scenario will play out.

Happy Trading,

Colibri Trader

P.S. If you are new to supply and demand, I have created an easy-to-follow Supply and Demand Video course that even a toddler will master in a weekend.