📊 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.
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.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.