I will buy the dip but only when the dip is over. Be patient.
QE3 ends in October and you know the behavior of the markets when QE1 and QE2 ended? No? QE1 dive 17% and QE2 dive 22%. So my target around 8750 level make sense, for now.
Dax is back to 9100 support level.
fourth time in 2014 DAX is around 9100 level.
DAX is bouncing in trading channel 9600 and 9100
break to 8900 and lower bring DAX in negative perspective next month's
if 9100 or 8900 hold we go back to 9800 zone again
QE3 ends this October and stock markets will dive before ECB or FED interventions. When QE1 ended stock markets dive 17% and when QE2 ended dive 22%. My target still around 8750 level, then i will see.
QE3 ends in October and you know the behavior of the markets when QE1 and QE2 ended? No? QE1 dive 17% and QE2 dive 22%. So my target at 87xx make sense. DAX this week CAN make a final push until ECB meeting this thursday.
DAX is fighting with 50 days MA. Last time (26th June 2014) when DAX begin some correction 50 days MA reject the move and turn up again. Probably this time will work the same way, but my 87XX target still in place.
Last week DAX jump with SP500 to 9900 zone after the Alibaba madness.
DAX is back down currently to 9700 small resistance zone.
On the daily DAX created a RSI divergence and bearish top candle
9758 is weekly Pivot / next resistance
9600 good old heavy resistance in 2014
If 9600 (9624 weekly S1) hold again DAX will have an other attempt to jump to new top.
9400...
5 weeks of uptrend, I am going to play dumb and follow the weekly trend.
Last week did not seem to have any bearish impulse move for me, and I have found d1 line chart support at 9597.
There is a 8 day bull flag channel. A pity i do not have h1 access, as there is also macd price divergence which convinces me this channel is meant for future upthrust.
i will also...
A very important resistance is at 9800 area. Any close above 9800 DAX will go for new all time highs. If 9800 hold a H&S formation is on the way, see 3 RED BOX in the charts.
Any weakness from US indices, will hurt DAX. My target still at 8700 level.
Surprise, surprise ECB cut rates yesterday and boost again stock markets.
A very important resistance is at 9800 area. Any close above 9800 DAX will go for new all time highs. If 9800 hold a H&S formation is on the way, see 3 RED BOX in the charts.
Any weakness from US indices, will hurt DAX very bad. My target still at 8700.
Today is European Central Bank meeting and i expected they will do nothing this time. Do not forget this weekend European Uniun can approve new sanctions to Russia.
DAX still inside the descendant channel. React from the 8900 until 9600 (61,8% retrace) for me DAX in a new leg down until 8700 level. This is time to TRY kill longs.
Short term - still in...
DAX still inside the descendant channel. React from the 8900 until 9600 (61,8% retrac) for me DAX in the 2nd leg down until 87xx level. This is time to TRY kill longs. Only a close above 9600 i change my view.
Short term - still in correction
Long term - bullish
Rising wedge is narrowing at significant round number 9300.
It's time for correction price going back down to 9200 and maybe lower at 9150 (38.2% retracement of latest up move). This could happen next week but the process can start today.
Another day and DAX still in correction, inside the descendant channel. We have another HL at 9700 , nothing change, lets see where DAX will go to make a new LL. I do NOT ADVICE open short positions at this level. Wait for the upside.
Supports:
9480 (50% retrac)
9350 (61,8% retrac)
Short term - still in correction
Long term - bullish
DAX is at the inside the descendant channel making LL (Lower Lows) and HL (Higher Lows). At this moment DAX is in a journey to test the top of channel again. Lets see if break the pattern and a close above the last HL (at 9810) will be consider bullish. If reject the 9810 and make a new HL more downside will come.
After DAX lose support in 9900 area , DAX going futher down yesterday to 9800. Today we see DAX at next support area 9711 (Top in in Feb, Mar and April) . 9700 is important zone. If broke this zone there is more space for futher downtrend to 9400 ( break trendline). Next important area are 9600 and 9500.
Sometimes it's good to take a bigger look. At the 1W view we see still an uptrend from 2011.
But MACD is showing divergence. This was also in 2008 and 2011 before a crash. Higher DAX lower MACD at second top.
Fibo's showing 10012 level for an importend level from the 2008 crash.
Important levels to watch.
9917 : first support line ( today) . Break this level...
![DAX: [Paper trade] Massive H&S on DAX](https://s3.tradingview.com/o/okK8UXuq_mid.png "[Paper trade] Massive H&S on DAX")
