DAX Trade Log DAX Buy Setup with Ichimoku Confluence
Geopolitical tensions—especially the ongoing conflict in Eastern Europe—continue to influence risk sentiment, while inflation and central bank policy remain in the spotlight. The European Central Bank’s more hawkish stance contrasts with fears of slowing growth in the Eurozone. Despite these headwinds, the DAX could see a near-term bounce, supported by technical signals:
1. Ichimoku Confluence : Price is testing the Kijun and the lower edge of the cloud, aligning with a daily pivot. A close back above the Kijun/cloud area suggests potential upside.
2. Volume Spike : Recent volume surge around this support zone may indicate bullish absorption—watch for follow-through.
3. Macro Backdrop : Although persistent inflation and geopolitical uncertainties loom large, short-term volatility can present trading opportunities. Keep an eye on ECB communications and any unexpected developments in global tensions.
4. Risk Management : A 120-point SL (around 2% account risk) below the key support could help protect against false breaks. Targets include the top of the cloud or previous swing highs.
5. 8-Day Cycle : Day 2 in your cycle analysis suggests a potential upswing—confirmation will come if price holds above this confluence zone.
Stay vigilant, monitor news flow, and maintain discipline in your trading plan. This is not financial advice—always do your own due diligence.