Dear Daily Price Action Setup Traders,
Today we have seen a quite decent move in the direction of my trading idea from yesterday. The price managed to hold under the resistance area. Now, it is a matter of momentum to be able to sustain this momentum. There is still no sign that we should exit our trade and even if we see some profit taking, there is still no indication for closing our short positions. I am looking closely though not only the daily price action setup trading, but also intraday trading activity for any sign. It still looks very bearish and I expect to see further drops.
In contrast with that move, today we experienced a strong bearish rejection from another financial instrument. There was a bearish rejection in the DAX market. The daily price action setup that formed is a pin bar. It is a strong indication that price would not only hold this level, but continue its strong uptrend. Having said this, you need to be extra careful since Christmas is statistically not the most active period, so we can expect some fake moves. A lot of the professional traders are taking holidays and hedge funds are not so active, as well. So, we can experience an outflow of volatility, which can lead to those “fake” moves that I mentioned before. But for the more aggressive of you, this would be a good long signal.
The parameters for a long entry of this signal are as follows: An entry at 9900. The stop should be placed just under the level of 9830. The first price target is the level of 10,000. The second one is 10,100.