DE30/EUR 1D Chart: Rebound from 55-day SMADE30/EUR 1D Chart: Rebound from 55-day SMA
The index that compiles 30 largest German companies is advancing against the Euro in the long-term rising wedge formation. This pattern started to form two years ago and today consists of two reaction highs and three reaction lows. Consequently, the breakout of the pattern is expected to happen in the Q2 2018.
In the meantime, in the middle of this year the exchange rate started to form new junior ascending channel but due to support provided by the 55-day SMA it began to transform into another rising wedge. As the northern side contains no notable obstacles, the pair is expected to continue climbing to the top, thus ending the year near the 13,600 level. In case of sudden reversal, the above moving average should prevent the pair from making a premature breakout.
De30
DAX testing support zoneFor the last few days we are observing on DAX a strong fall without correction. On session in November 13th price has touch support level and bounced up for near 150 points and drew bullish pinbar, but this didn't stop further price dropping. Today price has tested once again support level and went lower where buyers came out. This could beclassic hunt for stop loss characteristic for DAX. Question is if big players bought there? If yes, than we could see on the next sesssions defense of this level. This could be a good opportunity to open buy order. Looking for a bullish pin bar of November 13th which was negated we will wait for more signals to buy. If support zone at 12900-12960 will not be defended, price could drop at least to 12500 - 12300.
DAXEger fiyat 13.030'u gecer ve 13.030 ustunde kalicilik saglarsa ana hedef noktasina varana kadar turuncu olarak cizdigim fibo seviyeleri arasinda hizli hareket edip tirtikli fibo çizgilerinde yavaslayacaktir. Birincil ana hedef olan 13.330 da ise duzeltme dususu gelebilir, islemden cikip beklemek gerek.
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If the price exceeds 13,030 and sustains above 13,030, it will move quickly between the fibo levels I draw in orange until it reaches the main target point(13.330) and slow down in the serrated fibo straps.
The trade it and leave it rule... why did I not follow it?I was alerted of this trade via my friend's analysis which I also deemed fit to enter at my own risk. At 2017.07.26, Dax retested the broken support (which was also the 8 EMA at that time) which resulted to a formation of a bearish pin bar.
At the split second that I've adjusted the TP because of 'potential greed,' I have not kept in mind the possibility of such movement when the gap was filled. At the time the gap was filled, Dax, without hesitation, reversed to the upside probably for some breather. Sadly, it hit my SL which were adjusted to my entry levels.