DAX (Germany 30) Trading Setup
The trading scene last week has been quite muted. The summer season is definitely playing a role in the shape of the markets. Most of all- the financial indices
by: Colibri Trader
DAX (Germany 30) Trading Setup- Before I go into more details regarding today’s trading setup, I would like to come back to the one from last time (EUR/USD trading setup). We have seen the price skyrocketing last Friday and reaching our first target. Completely satisfactorily, I will taking off the full position, since I believe we might see a reversal. That is a very strong resistance level (1.1200) and I am looking to possibly enter in a short trade if the trading conditions align themselves into this direction. I will waiting for a pin bar formation (bullish rejection) or another bearish formation to dictate that. Otherwise, if we don’t see a bearish indication, we might have a continuation of the short-term uptrend.
DAX (Germany 30) Trading Setup- Today’s trading setup is a bullish indication for further gains in the DAX market. I am seeing a bullish pin bar (hammer) candle on the daily chart. It has formed just around the resistance area at 10,350. Although this is a harder trade to anticipate, the lower timeframes are giving me positive signals I am looking at a possible long trade. My entry will be at the level of 10,350. My stop-loss will be placed just under the level of 10,250 and my first target is the level of 10,550. 10,550 is the 50% Fibonacci retracement level and also a resistance area. If it is broken, we might expect GERMANY30 to reach the 11,000 level.
Check out my article on Price Action HERE
Check out why trading breakouts might be too dangerous HERE