Dear traders,

The trading idea from last time is still going in the expected direction.

GBPUSD has gone down almost 350 pips since I wrote about it.

Just as a reminder- there was a bearish engulfing pattern on the daily chart and price went on a steep dive.

Currently, the price is located between a major support level and a minor resistance.

I would be cautious, especially at this level when price can literally go both ways.

I will not be opening any new positions.

Germany 30 (DAX) Market Analysis for 22.11.2021

Today, I am looking at the German stock market.

There is a major supply zone that was pierced by price not a long time ago, as the image above illustrates.

The question is, where will price go next from here.

A little hint is that the price has formed a bearish engulfing pattern on the daily timeframe.

This looks like a good signal for the bears.

I will not be surprised to see the price moving lower to at least re-test the supply zone.

And why not break below it?

At this moment, anything is possible.

So, I guess we will need to just wait and see which direction will price take.

I might decide to take a short trade if I see price retracing back to 16250.

This needs to coincide with a bearish confirmation from the lower timeframes, starting with the 4H chart.

If I don’t see such a confirmation, I will just move on and wait for another pattern from the daily timeframe.

Happy Trading,

Colibri Trader

p.s.

Have you checked my recent article on Pump and Dump Strategies?