- German stock market (DAX 30) bullish price action is running into a heavy resistance zone. A bearish reversal could take place and create an ABCDE triangle
- A bearish breakout below the support zone (green box) could send the DAX lower towards the Fibonacci targets.
- The DAX chart needs to break below the support trend line (purple) to increase the probability of a triangle chart pattern developing.
The German stock market (DAX 30 index) bullish price action is running into a heavy resistance zone (red lines). A bearish reversal could take place and create an ABCDE (purple) triangle chart pattern. When would this triangle become confirmed?
Price Charts and Technical Analysis
The DAX chart needs to break below the support trend line (purple) to increase the probability of a triangle chart pattern developing. A bearish breakout could confirm (green check) the push lower to test support (green box). If price action keeps respecting the tops and bottoms, then an ABCDE triangle chart pattern is likely to emerge. A break of the top or bottom would invalidate (red x) that outlook within a potential wave 4 (green).
The SWAT candles are showing red color for the second time. Price action also broke below the support trend line (dotted purple) and the 21 ema zone. The trend lines also indicate a broken rising wedge reversal chart pattern. Price seems to have completed a bullish ABC (orange) within wave B (purple). A bearish breakout below the support zone (green box) could send the DAX lower towards the Fibonacci targets.
The analysis has been done with the ecs.SWAT method and ebook.
Elite CurrenSea Training Program(s) should not be treated as a recommendation or a suggestion to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative; such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Elite CurrenSea nor its representatives are licensed to make such advisements. Electronic active trading (trading) may put your capital at risk, hence all trading decisions are made at your own risk. Furthermore, trading may also involve a high volume & frequency of trading activity. Each trade generates a commission and the total daily commission on such a high volume of trading can be considerable. Trading accounts should be considered speculative in nature with the objective being to generate short-term profits. This activity may result in the loss of more than 100% of an investment, which is the sole responsibility of the client. Any trader should realise the operation of a margin account under various market conditions and review his or her investment objectives, financial resources and risk tolerances to determine whether margin trading is appropriate for them. The increased leverage which margin provides may heighten risk substantially, including the risk of loss in excess of 100% of an investment.
Recommended Content
Editors’ Picks
AUD/USD pressured as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.