Daily Timeframe: The shows that price closed just below a clear at 10048-10007 around the all-time high (see above). In the event that selling interest comes into the market here, we can likely expect prices to decline in value down towards an ignored daily Quasimodo seen at 9789. Let’s see what we can find on the 1hr timeframe.
4hr Timeframe: The DAX is currently caught trading in between a small 1hr supply area coming in at 10002-9988, and a 1hr demand area seen at 9867-9903. Range traders may want to consider buying and selling the limits with buys seen at 9908, and sells at 9983. Trading these levels blindly with pending orders may not be the best path to take, we would recommend waiting for lower-timeframe confirmation here before pulling the trigger.
Assuming that price breaks out north here, we would not consider this to be a buy signal since all price would have effectively done was trade into the higher-timeframe resistance mentioned above. A break below on the other hand could be an early signal that a sell off may well be seen down towards a 1hr demand area coming in at 9786-9820. The reason why price could potentially drop thus far is because to the left marked with a green we see consumed demand.
• Buy orders: 9908 (Predicative stop-loss orders seen at: 9864).
• Sell orders: 9983 (Predicative stop-loss orders seen at: 10011).