• Dow pattern- lower tops and lower bottoms
• Prices are currently trading below the downtrend line.
• Prices broken the uptrend .
The downtrend is confirmed by the cross of MA10 above MA20.
Prices are trading below the at 11455.30.
Confirmation of MACD: Divergences should be taken with caution.
• divergences are commonplace in a strong uptrend.
• Higher highs on price chart and lower highs on oscillator chart.
• is below the equilibrium level – zero (0).
Therefore, I will recommend SHORT POSITIONS for the no position holders on DAX30 . Take profit at 10709.35-10594.32 area the 161.8% Fib extension level. Stop loss should be a bit above the resistance level-R1, thus the stop loss is at 11664.86.
For SHORT-holders I will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.