Sell your GER40. Short long-term setup.

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The GER40 index is currently in a critical phase, with a key sell zone identified between 20,150 and 20,200. Traders looking to short this area could have a favorable long-term setup, with a target price of around 19,000 by January 2025. If the index breaks below this level, it may signal further weakness, paving the way for a larger bearish trend.

Looking further ahead, by March 2025, if GER40 breaks the 18,900 curvature, it will trigger a major shorting opportunity. This could open up the path for a deeper decline, with a potential target of 16,300 by November-December 2025, as the index could enter a prolonged downtrend.

However, staying above the 19,000 area is critical. If GER40 maintains support above this zone, it could form a bullish cycle, with a potential turnaround in early 2026. A break higher in January 2026 could signal the start of a smaller bullish trend, offering an opportunity for recovery after a period of extended weakness.

Overall, the outlook for GER40 is shaped by the movement around 20,150-20,200. The direction it takes from this key level will dictate whether the index enters a bearish phase or potentially sets the stage for a long-term recovery.