Bearish – sell at resistance and take profits near support. Assuming there is still momentum and room to move.
Today the article will be fairly simple and brief. The Dax is clearly bearish and we have broken below 12,000. I don’t believe that it means we are heading 10,000 but it’s a fairly significant alert. We remain in the longer term technical bearish trend after break previous lows. A likely target zone for many sellers will be between 820-850 and likely entry, for sellers who are not already short, will be closer to previous support in the 085-110 zone. Just be aware of the low volume node directly above this zone. In this type of scenario, a low volume node tends to make price react in one of two ways:
1. Price zooms straight through it to the next value area or point of control
2. Price is rejected without breaking through the zone and heads lower.
If we get a zoom through the LVN (1), then the composite market profile below shows the point of control is around 150, so this level could attract price and act as another shorting spot for sellers. It’s a zone more than a specific price. If price is rejected from t
If the price is rejected without breaking through the zone (2), then there is a great reward to risk opportunity in that setup.
That’s what I am looking out for. If there are buying opportunities on the way, then the current 965 levels are interesting as this was previously a measured move target, so it’s a support zone.
Potential resistance areas:
Value Area Low – 11983
Previous High Volume Node point – 12006
Point of control (POC) – 12059
Value Area High – 12071