Good morning traders!
Are we ready to reverse? I actually missed a key piece of technical evidence to support the bullish case yesterday and that can be found on the daily chart. We have a long-standing pitchfork, which began from 2009, that has been tested to the downside three times and the most recent time was within the last week.
I was expecting to reach somewhere nearer to 9560 to complete another leg down, but we have raced away and now actually closed above 10,000 again. If we are simply retracing the bearish week last week, then targets will be between 10133-10275. If we take out 10275, then we are primed to test 10350 and higher.
Dax Trade Setups
We are still in a bearish trend and the current price movement could still be a pullback which would allow a decent selling opportunity from current levels. A sell from current levels with a stop above Friday high would be on some bearish radars.
A short entry from around 10240 would be in the prime retracement sell zone.
A long from current levels 10050 with a stop under the recent low 9937 to target an extension of the recent swing can give us a target of 10245.
A break above 10093, which was the high for yesterday, can take us possibly higher towards 10245.
We may get a small pullback towards 10000 to allow buyers to get in at lower levels.
Dax Support & Resistance
|200 Day SMA||10639|
Watch for a retracement of the candle from last week before continuing to head further down. Alternatively, watch for a reversal.
The pitchfork is a good opportunity to buy, we are at support. A crash through this pitchfork could signal a much wider economic meltdown
Currently sat on the median line of the regression trend channel
We have crossed above the 34 hour EMA which could signal bullish momentum has taken over
We had an excellent rally in the early morning and then retraced 50% before closing just short of the daily high, this is bullish for me.