The DAX, What buyers and sellers see?

PEPPERSTONE:GER40   German 40 Index
DAX 40 index / 1D

What Bulls see?
The close of friday was a bulls bar with tails on both sides which indicates both side ways mode. The last week, Buyers see 2 bull bars closing at their highs and they are looking for a major trend reversal after a low and a higher low plus 3 legs down wedge reversal and head and shoulder. So, they are expecting a second leg up or a breakout mode which will lead to measured move from the breakout point. However, the contex might be bad forbulls. The price has been trading in a tigh trading range, so traders should look to swing only for scalps on the daily chart .

What Bears see?
The bears are still trading the trend line , selling any kind of breakout and previous highs. They also see the Tuesday bear bar closing at its low as a sell signal bar, and its a high probability sell bar. Bears also selling the average price for scalps. The reason the are not not holding their swings is Bulls have a strong weekly close. So, all the side ways are also inside bars.
If the bears get another bear bar closing at its low similar to Tuesday's close then there will be high probablity for buyers to give up and sells might aim for the low of May 8th or a measured move down.

Let me know which arguments seem solid for you.


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