Those that have followed my previous plan will have read that since the year 2000, when a month candle closes below the 50 it also touched the 200 (currently sat at 7'461).
Always trade your own plan and carefully watch price action.
The trend line on the daily chart's RSI has broken upwards. Unless DAX retraces considerably prior to reaching 11'940, don't just short there! Keep watching price action and don't short unless there is clear indication. Based on the strength of the uptrend from 11'300 please think twice before shorting!
DAX is at the top of the trend channel. The RSI trendline is breached and the MACD still wide open and on the up. The question is whether DAX is going to respect the price trend channel or the RSI and MACD indicators.
Price doesn't go up or down in a straight line... Also, there appears to be divergence between fundamentals and technicals. Impossible to make a definite call right now but think the chance of going up > than for it going down. DAX does need a bit of a breather though...
Ten consecutive green days doesn’t occur very often. DAX needs a breather and as always there’s a 70% chance of DAX reaching the Previous Week’s Midway point at 11’813.5. On the 4H chart we also see some price/RSI Standard Bearish Divergence but not yet on the MACD. If we had that, it would have been a no brainer.
Therefore I expect DAX to go down this coming week where my targets are 11’700ish and 11’500.
Wishing you every success!
At the same time, DAX will need a breather and hopefully this arrives before my stop loss is triggered at 12'400.
As always, trade your own plan and never take anyone else's as gospel!