GER40: Bearish Trend Continues – Targeting a Retest of 21887

Hello KoraFX community! Ava here from Melbourne, bringing you my latest read on the GER40. The market has been exhibiting clear bearish tendencies, and I'm seeing a compelling setup that aligns with our 'trend is your friend' philosophy.

GER40 Technical Analysis: Resistance Holds Strong

Looking at the GER40, we're currently trading around 22303.57, down -0.43% over the last 24 hours. The day range has been between 22158.91 and 22448.22, indicating some volatility but generally holding within a downside bias. My analysis points to a strong resistance zone forming around 22350 to 22400, with the high of the day at 22448.22 acting as a critical upper boundary.
I'm looking for a short entry around 22350. This level represents a key rejection point that has been tested multiple times. The confluence is strong here; not only is it a psychological level, but it also aligns with previous intraday resistance. A retracement back to this level after the slight dip we've seen would offer an optimal entry for continuation. My stop loss is placed methodically at 22581, which is comfortably above the established resistance at 22448.22, giving the trade room to breathe while protecting capital if the market surprises us with an unexpected push higher.

Macro Sentiment and Risk-Reward

From a broader perspective, despite some intraday bounces, the overall trend for the GER40 remains unequivocally bearish. The underlying economic sentiment across Europe, coupled with persistent inflation concerns, continues to weigh on the index, providing a fundamental tailwind for a downside move. This macro backdrop reinforces the technical picture we're seeing on the charts.
My target for this intraday short is 21887. This level is a significant support target, well below the current intraday support levels of 22158.91 and 22200. The multiple timeframe alignment for this