Dear Traders Trading Price Action
Looking at the Daily charts, one of them sticks out. The Daily candle of the DAX market is giving us a clear indication of further bullish momentum ahead. In fact, if I have to be precise, the last two days’ candles are definitely rejecting the level of 9900. Yesterday’s candle was a doji-like pinbar-like candle. Today’s candle is a clear pinbar, which confirms the hesitance of the sellers around the 9900-level. From a trading price action perspective, the price is just below a major resistance area. This is not the best moment to enter in a long position. At the same time, momentum traders are experiencing a great run. The price has taken them for an over 1600 points rally. Such a strong bullish momentum is not very common. In general, it could be experienced in the beginning phases of a bullish market or the ending stages of a rally. Therefore, we need to be extra careful when judging such a situation. For the more aggressive traders trading price action, this might be an opportunity to enter into a long position. The entry parameters are:
Entry point: current market price or 9952
Stop Loss: 9837
Initial price target for such a trade is hard to set. First of all, it is important to see how the price is going to react to the 10,000 level and then and only then decide whether a rally up to the next resistance level is realistic. Since we are at a multi-yearly highs, the way price would react to those levels is hard to establish. We are entering a completely new territory and trading price action would be the most helpful tool one can use.