GER40 (DAX) Analysis

GER40 (DAX) Analysis
📉 General Analysis:
• The price is currently in a corrective downtrend after a strong bullish move, indicating a profit-taking phase and liquidity retest.
• A bearish BOS (Break of Structure) is evident on lower timeframes, increasing the likelihood of continued retracement toward demand zones.
• The price is testing the 50% - 61.8% Fibonacci retracement levels, making them potential entry zones.

📍 Key Sell Zones (Short Entries)

🔴 Potential Sell Areas:
1. 22,600 - 22,650 → (Resistance zone + 50% Fibonacci + PDL level)
2. 22,700 - 22,750 → (Strong supply zone + previous sell-side liquidity)
3. 22,900 - 23,000 → (Final resistance before resuming a strong uptrend)

📌 Best Selling Scenario:
• Wait for a retest of the 22,600 - 22,650 zone and look for bearish reversal candles or CHoCH confirmation before entering short.
• If this level is breached, look for short entries around 22,700 - 22,750.

📍 Key Buy Zones (Long Entries)

🟢 Potential Buy Areas:
1. 22,450 - 22,500 → (61.8% Fibonacci + strong demand zone + PDL support level)
2. 22,350 - 22,400 → (Discount zone + previous strong support)
3. 22,100 - 22,200 → (Final buy zone before a potential deeper decline)

📌 Best Buying Scenario:
• Wait for a bullish BOS confirmation around 22,450 - 22,500 before entering long.
• If this level is broken, look for buy opportunities at 22,350 - 22,400.

📈 Expected Scenarios:
1. If the price rises to 22,600 - 22,650 and shows weakness → Look for short entries.
2. If the price drops to 22,450 - 22,500 and shows strength → Look for long entries.
3. If the price breaks below 22,350, further decline toward 22,100 - 22,200 is likely before a possible rebound.

🚀 Precise Trade Recommendations:

📉 Sell Trade (Short Entry)

✅ Entry Zone: 22,600 - 22,650
🎯 Targets:
• Target 1: 22,500
• Target 2: 22,400
• Target 3: 22,200

🛑 Stop Loss: Above 22,750
🔹 Risk-to-Reward Ratio: 1:3 - 1:4
📌 Confirmation: Wait for CHoCH or bearish reversal candle before entering.

📈 Buy Trade (Long Entry)

✅ Entry Zone: 22,450 - 22,500
🎯 Targets:
• Target 1: 22,600
• Target 2: 22,750
• Target 3: 22,900

🛑 Stop Loss: Below 22,350
🔹 Risk-to-Reward Ratio: 1:3 - 1:4
📌 Confirmation: Wait for a bullish BOS on 1H-4H timeframe before entering.