DAX (Germany 30) Trading Setup

by: Colibri Trader

Dear traders,

The trading idea from last time did perform as expected. The trade entry I had in mind was not triggered. This was a good coincidence, because the price is reversing now and I believe that there is not enough bullish momentum to propagate the price even higher. The resistance area at 0.8850 has been met and it looks stronger than expected. So far, the best trade among the last 3 trades seems to be the USDCAD short. It looks like the DAX trading setup is not as bearish as expected, but for that in a moment…

DAX (Germany 30) Trading Setup

The bearish resistance was met with a high dose of optimism. The price has bounced back on track is has finished the daily n positive territory. The daily candle is a bullish engulfing and it bodes well for all the longs. It is a trend-following setup. The only setback is that the resistance level at 12,875 might lead to some hesitance amongst the bullish traders. Apart from that, I can see some bullishness in the lower-timeframes and this makes me think we could see a new leg up. A possible long entry could be at 12,775. A stop-loss could be placed just under 12,655. From my observations seem that a good price target is the level of 12,875 and then 13,000.

Happy Trading,

Colibri Trader

P.S.

Have you recently missed a trade you wish you hadn’t? Check out my article on how to escape that in the future HERE

If you have any questions, please let me know on: [email protected]