DAX (Germany 30) Trading Idea

by: Colibri Trader

Dear Traders,

It has been a quiet week so far. My trading analysis & ideas from last time were quite productive. Price action has confirmed them and now I am monitoring them. I managed to get into a short trade in the USDJPY. It was confirmed by my trading strategy and I managed to get into a decent short trade. I missed the opportunity in AUDUSD, since the price went too high too fast. Since then, I am mostly following the USDJPY trade and am trying to limit my trading this week due to the UK Elections.

DAX (Germany 30) Trading Idea

Today’s trading idea is coming from the DAX (Germany 30) index. I am not sure I will trade this setup due to two reasons:

  1. UK Elections and the volatility this even will bring
  2. The fact that DAX is in an uptrend

The trading setup is there and I will cover it no matter whether I will trade it or not. The daily candle is an inside-like pattern. The price has just showed above the major resistance level at 12, 850 and has failed to stay longer there. Looks to me that this is a failed test of this resistance and market participants will turn bearish. It looks like the intraday action is confirming this bearish view. I am expecting to see a possible retracement to around 12, 750 and then a sell-off. A potential target for this setup would be 12,400 and then 12,000 (depending on PA). A possible stop-loss level could be 12,900.

Happy Trading,

Colibri Trader

p.s.

Have you checked my recent article on “Overtrading“. It is a very suitable read especially around the UK Elections.

Refresh your memories and read the Support&Resistance article HERE

Or simply practice on our free demo account

(Visited 430 time, 1 visit today)