Germany to experience mild recession?
It seems as if the German stock market has finally topped out at 16426.50. The reason I say this is due to the following technical factors -
The market has created the 3rd Elliot wave in the supercyle.
The market has taken out the sell side liquidity above 16334.50 where the majority of retail traders have placed their stop losses for sell trades earlier this year.
We've tested our major level of dynamic support 5 times, and not only did we break out of it, but the market also gave us a pullback and broke out of it as well to confirm that the market is looking to go to the downside.
We can look for further confirmation of a sell once price crosses below the major higher low and gives us a break of structure at 15626.60. I will only be looking to add more positions to this trade once price crosses below this level and creates a lower low.
Looking to target the inception point of the dynamic support and this setup will be invalidated if we cross above the 3rd Elliot Supercycle wave.
TP - 11794.50
Invalidation / SL- 16426.5 (3rd Supercycle Elliot Wave)
The market has created the 3rd Elliot wave in the supercyle.
The market has taken out the sell side liquidity above 16334.50 where the majority of retail traders have placed their stop losses for sell trades earlier this year.
We've tested our major level of dynamic support 5 times, and not only did we break out of it, but the market also gave us a pullback and broke out of it as well to confirm that the market is looking to go to the downside.
We can look for further confirmation of a sell once price crosses below the major higher low and gives us a break of structure at 15626.60. I will only be looking to add more positions to this trade once price crosses below this level and creates a lower low.
Looking to target the inception point of the dynamic support and this setup will be invalidated if we cross above the 3rd Elliot Supercycle wave.
TP - 11794.50
Invalidation / SL- 16426.5 (3rd Supercycle Elliot Wave)
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