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Wedgedown

London Watchlist: A high probability of a breakout on the DAX!Hey hey traders and wannabe traders! The London trading session is in full force and the markets are already moving! In the video we explain plenty of info about the Coronavirus and the current developments but don't go into the probabilities much, we did that with our community already! This video is all about our trading tactic/analysis on the DAX! Right now the DAX is showing more excellent signs that a bearish move is probably on the cards in the upcoming 8 hours or so... we remain short here and really believe with strong conviction that the bears will be able to take control with as we have technicals, fundamentals and sentimentals supporting a weaker DAX! On the technical side, the charts explain it all, on the fundamental the German GDP data was bad and the EC (European Commission) downgraded the outlook for the European economy and on the sentimental... well, the Coronavirus! All in all this looks like a pretty decent short positon but like anything in the markets, it's not 100% so make sure you have your exit area! Since the US markets are closed we will not do a New York watchlist later today... so see you tomorrow again for the London open, if we do find any interesting trades to take we will release them if we find the time to do so! Give us a follow and we'll make sure to keep you educated with specific info and solid trade setups!
OANDA:DE30EURShort
by PrimedGroup
Chart of the Day: ES1! Continuation WedgeWhen's a wedge a wedge and when is it a pennant formation? To answer this question:- #1 The wedge occurred post a trend-break which from experience is usually an ABCD down move at the minimum #2 The wedge is situated at a key interim support level (note the key SSR level at 2800) #3 Price action is now clustering below a new SSR level #4 Price action tried and failed to break through key MA resistance #5 The intra-day high is a 61.8% retracement of the AB leg The ES1! broke down because of a breakdown in trade negotiation between the Trump administration and China. Fundamentally speaking, nothing has changed during this consolidation phase to make me think markets are going for a melt-up. So, in my opinion, this is a continuation wedge aka pennant formation. The Chinese have articulated their red lines which are a function of sovereignty and economic reality. Whereas the Trump administration seems hell-bent on gunboat diplomacy to achieve a Plaza Accord type agreement and is seemingly lumping China in the same vein as Iran in terms of its maximum pressure doctrine. A 90-day reprieve for Huawei does little to soothe the tensions between the US and China. Rhetoric from China suggests a hardening of attitudes reinforcing the view that China view Trump as an untrustworthy negotiating partner and is hunkering down for the long term. Given the mutual distrust, it would appear a real deal is unlikely and the odds of a cold war type scenario is increasingly likely and the higher likelihood of Trump’s unforced policy errors upsetting an overvalued equity market with weakening fundamentals. The fact that S&P500 companies derive approximately half of their earnings from international markets seem to escape the trade hawks within the Trump administration. As always , sell when you can. This is just an opinion, do your own homework and this is not a solicitation to trade or otherwise. For more information on SSR levels, search scripts for Significant Force Support and Resistance.
CME_MINI:ES1!Short
by WellTrainedMonkey