GER40/DAX on crossroads
GER40 Index / DAX Outlook:
The DAX is pivoting at the resistance zone of 18,771.2 after a strong bullish uptrend that began on June 14th. This rise was followed by significant stop-loss hunts during the release of US news. Notably, I have observed a pattern where the weekly 100 MA and daily 50 MA crossed on the 30-minute chart. The last occurrence of this pattern was on June 13th, which led to a substantial downward movement of 3.86% in the DAX. I expect a similar movement in the following week if the strong low of 18,200 is sharply broken.
My Position:
I see two scenarios unfolding:
Breakdown: If the price action strongly breaks the psychological support at 18,200, I will look to enter a sell position.
Pullback: If the price recovers, I plan to sell during the pullback from my resistance zones between 18,500 and 18,800.
However, if these scenarios are invalidated by a sharp move, I will not engage in any order. Patience is crucial here, as I aim to sell at every high point. The markets are currently too elevated to continue the uptrend without clear justification. Good luck, traders!
The DAX is pivoting at the resistance zone of 18,771.2 after a strong bullish uptrend that began on June 14th. This rise was followed by significant stop-loss hunts during the release of US news. Notably, I have observed a pattern where the weekly 100 MA and daily 50 MA crossed on the 30-minute chart. The last occurrence of this pattern was on June 13th, which led to a substantial downward movement of 3.86% in the DAX. I expect a similar movement in the following week if the strong low of 18,200 is sharply broken.
My Position:
I see two scenarios unfolding:
Breakdown: If the price action strongly breaks the psychological support at 18,200, I will look to enter a sell position.
Pullback: If the price recovers, I plan to sell during the pullback from my resistance zones between 18,500 and 18,800.
However, if these scenarios are invalidated by a sharp move, I will not engage in any order. Patience is crucial here, as I aim to sell at every high point. The markets are currently too elevated to continue the uptrend without clear justification. Good luck, traders!
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