GER40/DAX on crossroads

7月19日

GER40 Index / DAX Outlook:

The DAX is pivoting at the resistance zone of 18,771.2 after a strong bullish uptrend that began on June 14th. This rise was followed by significant stop-loss hunts during the release of US news. Notably, I have observed a pattern where the weekly 100 MA and daily 50 MA crossed on the 30-minute chart. The last occurrence of this pattern was on June 13th, which led to a substantial downward movement of 3.86% in the DAX. I expect a similar movement in the following week if the strong low of 18,200 is sharply broken.

My Position:

I see two scenarios unfolding:

Breakdown: If the price action strongly breaks the psychological support at 18,200, I will look to enter a sell position.
Pullback: If the price recovers, I plan to sell during the pullback from my resistance zones between 18,500 and 18,800.
However, if these scenarios are invalidated by a sharp move, I will not engage in any order. Patience is crucial here, as I aim to sell at every high point. The markets are currently too elevated to continue the uptrend without clear justification. Good luck, traders!