DAX40 - Buy trade Idea 📊 GER40 (Germany 40) – 1H Analysis
I’m currently watching a potential bullish continuation setup forming on the Germany 40 index.
🔎 Key Observation:
1. Support Zone: Price has tested the 24,240 – 24,260 support area multiple times (highlighted with circles), showing strong demand. Each rejection created long wicks, signaling buying pressure.
2. Bullish Divergence: On RSI (bottom panel), we can see higher lows forming while price action made lower lows → a classic bullish divergence. This often indicates weakening bearish momentum and a potential reversal to the upside.
3. Falling Trendline: A descending resistance line is capping the recent lower highs. A clean breakout above this line could trigger bullish momentum.
4. Projected Move:
• First, I expect a potential retest of the 24,240 – 24,260 support zone.
• The upside target is the 24,480 – 24,520 resistance zone (grey box), where sellers previously stepped in.
⚠️ Invalidation:
If price breaks and closes below 24,200, this setup weakens as it would invalidate the support structure and divergence.
