Bearish Opportunity Emerging as DAX Forms Bullish ABCD Pattern
The long-term trend since 2022 remains downward based on lower highs and lows. However, the short-term trend has turned neutral/flat.
Support: 15660 (previous low), Resistance: 16150 (21-day EMA)
Moving Averages: Price is trading above the 50, 100 and 200-DMA, indicating a potential trend change.
Recent action: The DAX has bounced off 15660 support and is currently consolidating below the 21-DMA resistance.
There is a bullish ABCD pattern currently forming on the DAX daily chart:
Point A: 16029
Point B: 15573
Point C: 15893
Projected Point D: 15499
This is a bullish continuation pattern that typically resolves with a move higher past Point D. However, in this case, it seems the DAX may have trouble breaking above the downward resistance trendline.
Recommendation:
Given the context of the longer-term downtrend still intact, traders could look to short the DAX on a close below Point C at 15893, targeting the projected Point D low of 15499 or traders could wait for a break of the 16150 resistance to then look to enter long positions. Alternately, a break below 15660 support would suggest renewed downside momentum.
Entry: Short on close below 15893
Stop Loss: Above previous high at 16029
Take Profit: 15499 (projected Point D of ABCD pattern)
Adding the technical details of the forming ABCD pattern provides additional validation for entering a short position at current levels, with the goal of profiting from the completion of this bullish reversal pattern turning bearish given the longer-term bearish biases still in play.
Please share your thoughts below
The long-term trend since 2022 remains downward based on lower highs and lows. However, the short-term trend has turned neutral/flat.
Support: 15660 (previous low), Resistance: 16150 (21-day EMA)
Moving Averages: Price is trading above the 50, 100 and 200-DMA, indicating a potential trend change.
Recent action: The DAX has bounced off 15660 support and is currently consolidating below the 21-DMA resistance.
There is a bullish ABCD pattern currently forming on the DAX daily chart:
Point A: 16029
Point B: 15573
Point C: 15893
Projected Point D: 15499
This is a bullish continuation pattern that typically resolves with a move higher past Point D. However, in this case, it seems the DAX may have trouble breaking above the downward resistance trendline.
Recommendation:
Given the context of the longer-term downtrend still intact, traders could look to short the DAX on a close below Point C at 15893, targeting the projected Point D low of 15499 or traders could wait for a break of the 16150 resistance to then look to enter long positions. Alternately, a break below 15660 support would suggest renewed downside momentum.
Entry: Short on close below 15893
Stop Loss: Above previous high at 16029
Take Profit: 15499 (projected Point D of ABCD pattern)
Adding the technical details of the forming ABCD pattern provides additional validation for entering a short position at current levels, with the goal of profiting from the completion of this bullish reversal pattern turning bearish given the longer-term bearish biases still in play.
Please share your thoughts below
Not
Keep holding, we're almost there!İşlem kapandı: hedefe ulaştı
Take Profit Hit (TP HIT)İşlem kapandı: hedefe ulaştı
Take Profit Hit (TP HIT)
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.