DE40 (German Index) – 1-Day Time Frame AnalysisDE40 (German Index) – 1-Day Time Frame Analysis
The price of DE40 is nearing its all-time high at 19,677, and we’ve seen strong bullish momentum over the past several weeks. Based on this trend, there’s a good chance the price may continue to rise.
Two Scenarios to Watch:
Possible Reversal:
While the bullish trend is dominant, there’s a possibility of a short-term reversal near this key resistance. To capitalize on this, monitor the 4-hour time frame for confirmation. Look for a clear red candle before considering a short position.
Break and Retest for a Long Position:
If the price breaks through the critical level of 19,671, avoid entering a long position immediately. Instead, wait for the price to reach higher levels and then pull back to retest 19,671 as a new support zone. Once this level holds and there’s confirmation (e.g., bullish candlesticks), consider taking a long position.
Final Thoughts:
The odds favor continued bullish momentum, but patience and proper confirmation are key to avoiding false entries.
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