DAX (Germany 30) Trading Analysis
It has been a while since I last posted a trading-related article.
Last time I wrote about DAX, as well!
This time the instrument won’t be different. I did share with you today on my Twitter page a possible trading scenario, which was contrary to what I am going to share now.
I was looking for a potential confirmation of the minor demand zone.
I was waiting for a close on the 4H chart, but such did not happen. In fact, there was a rejection (inverted pin bar) that resulted in a quick reversal.
That is another reason why I put so much emphasis on waiting for the close of the candle.
I have zoomed out and increased from 4H to a Daily chart only to find out that there is a three-day bearish engulfing pattern.
This bodes well for the bears. There is a major supply zone that is just around the current level of the price.
What I will be looking for is:
- Either a confirmation from the 4H chart to go short during tomorrow’s session
- Or bull trap that might make us see a new high and then more sellers joining the queue
Until that happens (and if that happens), I will be patiently waiting and never trying to predict where the market might go.