GER40 (DAX) Potential Bearish Reversal from Order BlockAnalysis Summary
Order Block Resistance: The chart highlights an order block around 19,373, which acts as a resistance zone. If the price reaches this level, it may encounter selling pressure, providing a potential area for a bearish reversal.
Lower High (LH) and Strong High: The presence of a lower high (LH) suggests that sellers are maintaining control at higher levels, reinforcing the resistance within the order block. This aligns with the overall bearish structure seen recently.
Support Zones: There are key support levels marked around 19,098 and 19,002, which could act as downside targets if the price reverses from the order block. These areas may attract buyers if tested, but a sustained break below 19,002 could indicate further bearish momentum.
Break of Structure (BOS): Previous BOS levels confirm bearish momentum, showing that the market structure has shifted to favor sellers. This enhances the probability of a downside continuation if resistance holds at the order block.
Potential Scenarios:
Bearish Reversal from Order Block: If the price reaches the 19,373 order block and faces resistance, it could initiate a bearish move toward the support zones at 19,098 and 19,002. A break below 19,002 would reinforce the bearish trend.
Short-Term Breakout: If the price breaks above the order block at 19,373 and sustains above it, this could invalidate the bearish setup, indicating a potential trend shift toward higher levels.
Conclusion
The GER40 is approaching a significant resistance within the order block at 19,373, where a bearish reversal could lead to a decline targeting the 19,098 and 19,002 support zones. Traders should monitor the reaction within the order block for potential short entries, keeping an eye on the support levels as downside targets.
