I am staying bearish. Technicals might need a recalibration under current market conditions.
I do not see the Dax flying to the moon soon, especially when the ripple effect of supply chain management across the world becomes a bigger issue and might get some stops and holds on their output - export of the automotive sector.
Deutsche bank is not in the clear yet,...
Pattern: Inverse Head and Shoulders on 4H within a 1D Channel Down.
Signal: Bullish if the Lower High trend line breaks (green bold line) and as long as the Support Zone indicated holds.
Target: 12300 (the 1D Resistance).
A red channel is descending, the trend is completely downward, you can see that the Dax stopped precisely with resistance. Later, it returned to resistance in a short time and again it did not succeed. Now the sellers are taking over.
Entry price: 11980
Stop loss: 12250
Take profit: 11630
Yesterday’s session turned out to be yet another success in a long row. The hypothesis suggested the breakout of Wednesday’s high and Dax was pierced that level with strong momentum, not even reacting by any bounce at the resistance level of 12 190. We haven’t even found sellers at the first resistance level laying at 12 097. Today we open with a descending...
Pattern: Channel Down on 4H.
Signal: Bearish after a Lower High rejection today.
Target: 11,855.70 (4H Support).
*Note: If 11,800 breaks, the 1D Channel Up can technically reach its Higher low at 11,620.
Pattern: Channel Down on 1W.
Signal: Bearish since the price is near the pattern's Lower High.
Target: TP1 11215, TP2 11050.
*Note: The same pattern took place in 2015/ 2016. After the 5th wave on the Lower High the index pulled back to its 0.5 Fibonacci and then broke the Channel upwards.
As described the days before DAX has made a new Long setup
verify to see at the new red marked trendline long
For the next trading day:
If Dax can not hold the strong long setup there is a blue marked
long support line below where Dax could hold and stay in long
If these trendline also breaks there is the big support
( have colored in black) at around...
We had a risky time after the german index DAX has fallen to a low at 11.800 pt and after leaving the diamond pattern.
At 11.730 pt it found the low which marked the end of wave C.
I wasn´t sure if the index had enough momentum to break the strong resistance at 12.600 pt (fib retracement 78.6%). But it had, when attacking it in the second motive wave.
Two possible scenario for DAX.
We closed two gap.
Retest last high and continuation bullish scenario (blue arrows).
Or we will break the minimum of the last week and continue moving down (pink arrows).
I will comment on the idea, as events unfold.
Thank you for your attention.