In the previous time I covered GER30 it was heading towards the completion of a bearish Bat pattern (see linked idea). We had two sell zones - 11,000 (structure and 200 SMA line) and 11,400 (Bat pattern completion. The anticipation that Draghi will fire his Bazooka pushed GER30 beyond the 200 SMA line and the strong resistance zone of 11,000 and it completed the Bat pattern just before the ECB press conference.
On last Thursday, the day of the ECB, GER30 rallied 1% to create a Kiss of Death setup just before it crashed into First target zone
Now, as the price is again below the 200 SMA line and below 11,000 (also below it's downtrend line), I expect continuation lower towards secondary target zone near 10,200.
In the chart you can see potential R/R
*Due to the coming FOMC meeting, I expect higher volatility from stock markets indices.
Tomer, The MarketZone Follow me on TradingView Subscribe to my newsletters - goo.gl/R3gPVE Follow my blog - goo.gl/78KZsl Subscribe to my Youtube channel - goo.gl/q8dbyT
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Correction - My latest TradingView analysis didn't include the Bat pattern. The Bat pattern was mentioned in my weekly newsletter last week goo.gl/QR35d3
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Sell zone includes: Downtrend line Structure 61.8 Fib level Broken trading channel bottom
As 11000 was support which was again broken down is it safe to enter shorts targeting 10200??
themarketzone
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If it'll reach 11,00, I would look for intra-day reversal inside the sell zone. Understand that the markets are still trying to figure out what the Fed will do on December and how they will react to the Fed actions. The market can rally all the way back up.. you can't tell.
11,000 is the technical sell zone and 11,200 is the zone's top, but notice where you're stop loss should be.
If you accept the potential risk, technically I really like this setup.