GER30 Volatility VDAX index is below 20 following increased chances for interest rate cuts in December. Sounds to me like a good ground for trend up, am I right?
Fibonacci Extension: The current rally has hit the 1.272 extension of the previous correction. The next major resistance aligns with the 1.414 extension at 23,350. Harmonic Pattern: A Bearish Butterfly Pattern is nearing completion. The Potential Reversal Zone (PRZ) is calculated between 23,320 and 23,350.
๐ก๏ธ Support and Resistance Levels
Resistance 1: 23,320 (Harmonic PRZ) Resistance 2: 23,400 (Psychological Round Number) Support 1: 23,220 (Previous High / Support Flip) Support 2: 23,150 (0.382 Fib Retracement)
๐ฏ Strategic Trade Setups
Scenario A: The Reversal (Short) Valid if price rejects the 23,320 zone with a bearish pin bar. Entry: Below 23,280 Target 1: 23,220 Target 2: 23,150 Stop Loss: 23,360
Scenario B: Breakout Continuation (Long) If price closes above 23,350 on strong volume. Entry: Retest of 23,350 Target: 23,450 Stop Loss: 23,300
GER40 Fundamentals ๐ญ: GDP stagnated Q3, industrial output at 2020 lows, manufacturing -4.8% YoY. Export-heavy firms mask domestic weakness, but global diversification supports resilience.
