This is the my second trade idea regarding Wacker Chemie AG (WCH).
After the first idea gave a nice ~ +27% gain and as WCH is currently in a strong downtrend, looking for zones to open a new position.
Overview WCH is stuck in a range (This is the monthly chart). Breakouts of the range (yellow circles) on either site leads to price moving to the opposite side and usually a retest / fake- out.
Scenario 1 (Orange arrow) Requirements: Price falls down to the buy zone (green area). Breaks below the bottom of the range and retakes it. Stop- Loss: None Invalidation: Price breaks below bottom range but doenst retake it Target: Slightly below S/R Level 1
Scenario 2 (Blue arrow) Requirements: Price falls into the buy zone(green area). Generates a reaction (Swinghigh). Price drops but stays above the buy zone. Price Stop- Loss: Price closes on the the monthly below the bottom range Invalidation: Price breaks below bottom range but doenst retake it Target: Slightly below S/R Level 1
Good luck
]Disclaimer: - This information does not constitute as financial advice and is only for entertainment purposes. I am not your financial advisor. - You trade entirely at your own risk - Make your own research - Finance and trading is evil, capitalism is bad, duh