DAX has been lifted off from the 11100 low after a false break down. However, the long term structure is still bearish so long as it is not able to stand back above 12000 key level. Therefore we are looking to re-exert the shorts when the time is right. One of the possibility is when DAX meets the potential resistance offered by this down sloping trend line. I will watch closely on how price interact with this down sloping trend line to look for shorts. The best setup is a buyer failure -- break above and back down quickly below the trend line.
Comment:
DAX had a false break above of the trend line and was quickly auctioned back down. This is an extremely bearish pattern. We are going to see much lower prices in the next few weeks