DAX INDEX Potential SHORT Setup
DAXOn March 22, the DAX Index broke the bottom 4H Channel Line (BCL 4H) and the SMA 100 to the Downside.
Prior to that, we broke the 1D upper Channel Line (UCL 1D) of the previous Downtrend. Now it looks like the Index
is finding Support in that UCL 1D, but still, we are forming a H&S on the 4H Chart, which could form into a SHORT Setup.
On my 4H Chart you can basically see where I expect Price to respect certain Levels and where I think Price might go all
based on Trend- and Channel Lines, SUP/RES Levels, H&S Pattern and 100 + 200 SMAs.
If that Setup plays out and we enter that 1D Channel again (Breaking the UCL 1D) + the SMA 100 and SMA 200 indicate a Downmove, I would
Enter SHORT with the Target (Based on Previous Structure)
(1) 10860.07
(2) 10287.05
The second Target depends on how Price reacts on that Target (1) Level.
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