Kumowizard
Long

DAX - Play the correction with buying Call Options

FX:GER30   DAX index of German listed shares
164 0 0
Daily: Two days ago Price reached the multiple bottom key support zone 8900-9000.Watch for today price action! Intraday volatility has increased a lot, this can mean a reversal and a pull back may be due soon. Closing will be extremely interesting and important. Yesterday a bullish reversal happened from the Key support area. If today DAX             closes rather near 9100, then we'll have an inside bar hammer, while Slow Stoch started to point upwards too, from the oversold zone. In this case a correction to 9250, or in better case even to 9450 will be possible.

4 Hrs: This time frame still looks bearish , the only cautious price action signal so far is that last candle low was bit higher than yesterday's low. Otherwise everything else looks bearish until Price stays below 9200.

Putting it all together: DAX             may start a corrective move like it did in August, but with intraday volatility to persist. If one goes long here outright, that is highly speculative and rather a bottom fishing. Risk of being stopped too early is high. For this reason I have chosen an alternative strategy, first bullish chunk I played via buying November Long Call options @9450. Expiry of the options contract is 43 days. This way the loss is limited in the options premium, and we are also protected against being stopped several times too early before it starts moving up in case.
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