Analysis Summary
Lower High (LH) and Strong High: The recent lower high (LH) formed near 19,650 shows where sellers pushed back strongly. This area is reinforced by a broader supply zone, indicating significant resistance if the price rises to test this level again.
Change of Character (CHoCH): Several CHoCH levels highlight shifts in short-term momentum, suggesting mixed sentiment. The recent CHoCH near 19,150 hints at the potential for a reversal to the upside, especially if buying pressure continues to build.
Support and Demand Zones: A large demand zone, marked in blue around 18,875 to 19,000, represents a strong support area. This zone may attract buyers if the price retraces downward, potentially providing a foundation for a bullish move.
Weak Low: The weak low at 19,000 indicates a vulnerable support level. If this level is breached, it could open the path to a deeper bearish move; however, if defended, it could act as a catalyst for a bullish reversal.
Potential Scenarios:
Bullish Reversal: If the price continues to hold above or near the 19,000 demand zone, a bullish move targeting the resistance area around 19,250 to 19,300 (first resistance) and potentially the strong high near 19,650 (second resistance) is possible.
Downward Retracement: A short-term pullback into the demand zone (18,875–19,000) could attract additional buyers, especially if the price action shows signs of support. If the price sustains above this zone, it may confirm a reversal, leading to upward momentum.
Conclusion
GER40 shows potential for a bullish reversal if the demand zone around 19,000 is defended. Traders should monitor reactions around this zone, as a strong bounce could lead to higher levels, while a breakdown might lead to a further decline. Watch for bullish signals near the support areas for entry opportunities.
Lower High (LH) and Strong High: The recent lower high (LH) formed near 19,650 shows where sellers pushed back strongly. This area is reinforced by a broader supply zone, indicating significant resistance if the price rises to test this level again.
Change of Character (CHoCH): Several CHoCH levels highlight shifts in short-term momentum, suggesting mixed sentiment. The recent CHoCH near 19,150 hints at the potential for a reversal to the upside, especially if buying pressure continues to build.
Support and Demand Zones: A large demand zone, marked in blue around 18,875 to 19,000, represents a strong support area. This zone may attract buyers if the price retraces downward, potentially providing a foundation for a bullish move.
Weak Low: The weak low at 19,000 indicates a vulnerable support level. If this level is breached, it could open the path to a deeper bearish move; however, if defended, it could act as a catalyst for a bullish reversal.
Potential Scenarios:
Bullish Reversal: If the price continues to hold above or near the 19,000 demand zone, a bullish move targeting the resistance area around 19,250 to 19,300 (first resistance) and potentially the strong high near 19,650 (second resistance) is possible.
Downward Retracement: A short-term pullback into the demand zone (18,875–19,000) could attract additional buyers, especially if the price action shows signs of support. If the price sustains above this zone, it may confirm a reversal, leading to upward momentum.
Conclusion
GER40 shows potential for a bullish reversal if the demand zone around 19,000 is defended. Traders should monitor reactions around this zone, as a strong bounce could lead to higher levels, while a breakdown might lead to a further decline. Watch for bullish signals near the support areas for entry opportunities.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.