There might be another divergency coming with Hannover Rueck. There was a first one mid september (see first red arrow in ). The downtick of the completed a divergency, as prices moved to a higher value but to a more shallow high. Going short with the downtick would have meant possibly going in at 120. Completing the pullback into the value zone between the EMAs and buying with around 118.
Now a second divergency is emerging. As long as stays as shallow as it is and there is a down tick this is a signal to go short.
Note that the weekly shows trending long and Elder impulse is both green in weekly and daily. So far selling is permitted.
Take it at your own risk. A pullback to value is possible here.
Entry might be around 121
Stop loss at 122
Profit taking at 119
Let me know what you think.
I will go short with 120.07
If MACD ends shallower again today a new approach to the bearish divergence is taken.
Congrats to all who have been shorting this.