Dax, failled bull breakout.

DAX / 1D : Dax, failled bull breakout.

Hello traders, welcome back to another market breakdown.

In this analysis, I'll lay down the arguments for bulls and bears and let you take your bet.

As a recap of the last analysis shared on the daily chart, I mentioned that Bulls will try to make a breakout but most of the breakouts fail, the first target for bulls was 14700 (second leg up) , which was achieved. However, as strong as the bulls looked at the time, sellers reversed them with even a strong bear bars closing at their lows.

Bears see:
1- Double top, and break bellow the neckline. This would most likely lead to a measured move down.
2- They see also a low and a lower high on the monthly chart, so, they will be looking for a breakout bellow March low aiming for the second leg down as a target.
3- short term sellers see that bulls made money buying around the 12600 level so they might sell more till they get there.

Bulls see:
1-Strong breakout from the trend line, looking for the price to make a higher low or the traders who sold lower to get out at breakeven so they will buy more scaling in their positions betting on a trading range.
2- Some bulls will prefer to stay out till the price reaches the bottom of the trading range.

It's more likely the bears will reach their first target lower. However, traders should be aware that the FTSE chart is also timed with DAX chart, based on how the prices moving, it's more likely for bulls to show up strong once the FTSE arrives to the next key level.

Trade safe,
Trader Leo.