DAX (Germany 30) Trading Analysis
DAX (Germany 30) Trading Analysis
Dear traders,
The last trading idea that I wrote about was on Gold (XAUUSD). I believe that the revival of commodities is just around the corner.
I am quite bullish on the Gold market in the long-term. Although I have made a little bit of profit on my latest trading idea, and it is showing bearish signs, I believe in the bullish bias in the long-term.
The daily chart did print a bearish engulfing pattern in a supply zone, so I have taken 80% of my profit off the table.
If I see another bearish candle I will close the rest on my position.
Whereas, I am expecting to see a bearish rejection candle or a pin bar and possibly more buyers rushing in to push the price even higher.
So far, I am just reading price action and that is why I have closed a big part of my trade, but believe that it might be the beginning of the real uptrend.
I will definitely be paying very close attention to this market.
DAX (Germany 30) Trading Analysis
I have been monitoring the DAX market and was waiting for a place to short it.
On Friday I was given an indication that the time for DAX might have come already. There is a bearish candle (inverted pin bar) and this gives me confidence that maybe more sellers will join the trend.
I will be monitoring the price action on Monday and Tuesday and if 4H gives me a confirmation to sell the DAX, then I won’t hesitate much.
Just be careful with the imminent support level at 12200.
If we see a definitive break below this level, the next support level is at 11700.
Happy Trading,
Colibri Trader
P.S.
Check out my recent article on Trading with Chart Patterns
Hello Colibri,
Thank you for your post 🙂
From a cfd chart, there was a bearish engulf weekly candle … then next week a retrace took place which traveled 50% up into that previous range. I actually nailed an entry short within 5 points of 12460 which was the 50% number. I scaled out 50% but lowered my stop and the market took the rest out.
Now that price action has played out, I see 12000 as an almost obvious target to be hit.
For some reason the DAX is in a down trend with every previous support becoming resistance.
Currently there is a nice formation on the one hour chart that looks like a bear flag and will most likely break downward, given counter trend direction. Just to mention that sometimes obvious patterns can do some surprising theatrics thanks to market makers and Trump tweets hahaha.
I’m not so sure if this is a definite major trend change or if price will halt and do an about face at 12000 but seems price action will always prove to be right. The player needs to remain neutral and unbiased everyday, maybe then he has a chance at survival.
A counter retrace at this level would not surprise me, after all it’s how the market works. Playing the games that affect each person’s psychology differently. OH they know what makes us tick, but enough of the conspiracy theories.
Price action and price action only for me … the charts never lie.
Regards
That is definitely a great analysis! I am seeing a bearish trend, as well! Let’s just wait and see if it is a major downtrend, or just a minor correction. Something tells me, we might be onto something significant. But that is just an expectation, not a real bias. Price action only for me, too!