German Index DE40/DE30 Analysis - January 13, 2025

German Index DE40/DE30 Analysis - January 13, 2025

Today, we’ll discuss the German Index (DE40/DE30) on a 30-minute time frame. Currently, the momentum remains bullish, and the price recently tapped into a significant resistance zone at 20,191. However, following this interaction with the resistance, there are indications of bearish momentum forming, which could signal a potential move to the downside.

Logical Analysis and Predictions:
Resistance Interaction: DE30EUR
The level of 20,191 has historically acted as a strong resistance, which often leads to retracements. The initial rejection observed suggests the possibility of a bearish correction.

Expected Downside Targets:

The first potential target is 19,950, where the price could pause briefly as it interacts with this minor support level.
A stronger downside move could take the price to 19,761 or even as low as 19,750, aligning with a key support zone.
Confirmation of Downside Momentum:

Before taking any position, conduct multi-timeframe analysis.
Watch for a change of character (CHoCH) or a break of structure (BOS) on the 30-minute or lower time frames, confirming a bearish bias.
Ensure the trade setup provides a low drawdown by identifying precise entry points with clear stop-loss levels.
Risk Management and Reminder:
Trading is reactive, not predictive. This analysis provides a possible scenario, but it’s crucial to validate with your own strategy and methodology. Protecting your capital is more important than chasing profits.

This concludes today's analysis. Trade smart, use proper risk-to-reward ratios, and we’ll see you in the next update.