Commerzbank (CBK.DE) Daily Chart Our Expectations: A declining trend. Correction to multiple resistances. Possibility for short positions with stop 6.10.
Alternative scenario: Breakaway, test and holding over the resistance will activate the double bottom, which will ruin this scenario and has the potential to significantly increase the value of the shares of the German bank.
Comment: A downward main trend. Correction to strong horizontal and diagonal resistance. At these levels is also 23.6% Fibonacci, which makes the area even more valid. 50/200 SMAs are in a bearish configuration, confirming the downtrend. Price action signal from engulfing bearish bar at resistance levels. Strong signal for short. For a more precise entry, we expect CCI 50 to cross level 0 from top to bottom. This will indicate that the correction is over. The key to the trade is in the combination of this indicator with RSI 14. When it crosses into negative territory it will give us the last necessary criterion for entry.
For correct positioning of the stop, we measure the distance from the resistance to the highest point of the spike from the previous day. Exactly this distance above the figurine contains a bundle of stops and can be triggered with stop hunting purposes. Once again, we place this zone on top so that our stop order is protected.
SL: 6.10
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